Central Banks
Lagarde Says ECB Will Debate QT Once It Has Normalized Rates
- Interest rates remain ‘appropriate’ tool for now: ECB chief
- So-called quantitative tightening to be discussed later
Christine Lagarde
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
Christine Lagarde said the European Central Bank will consider shrinking its balance sheet only once it has completed the “normalization” of interest rates.
Raising borrowing costs is the most appropriate and effective tool for now to combat record-high euro-area inflation, the ECB President told lawmakers in Brussels Monday.