Fx trading news: ECB Lagarde holds a press conference to reiterate the content of the policy statement!
2020-03-13 14:24 from：CAPSTONE author：Jack
Capstone forex trading news: At 9.30 pm Beijing time on Thursday, European Central Bank President Lagarde held a press conference, which reiterated the content of the previous ECB policy statement and emphasized that the ECB's measures will help to provide credit smoothly, and The European Central Bank lowered its economic growth forecast for this year and next.
Lagarde mainly talked about the following points in his speech:
1. Finance and economy. Lagarde said that the spread of the new crown pneumonia epidemic will have a great impact on the economy and requires ambitious and coordinated financial measures. The epidemic is an important downside risk, but economic growth will resume momentum in the medium term. The European Central Bank is carefully monitoring the spread of the epidemic.
2. Monetary policy. Lagarde said that the stance that requires easing has not changed for a long time, and if necessary, the European Central Bank will adjust all tools and will closely monitor the level of inflation.
3. Inflation. The European Central Bank has maintained its previous inflation expectations, but believes that the main inflation indicators will fall sharply in the next few months. The decline in oil prices and the epidemic will have a highly uncertain impact on inflation.
4. Credit. Lagarde said that favorable long-term loan conditions will be guaranteed with a loose stance, but similar measures such as loan guarantees are needed, and the measures of the European Central Bank will help to provide credit smoothly. At current interest rates, all banks will receive the required funds.
5. Policy tools. Lagarde said that the policy decisions of the European Central Bank were adopted unanimously, and the relevant policy tools were very effective and targeted precisely at the crisis. The European Central Bank will use "all the flexibility" of its quantitative easing program.
In addition, Lagarde also specifically mentioned that the European Central Bank has not yet reversed interest rates, and if there is a need to cut interest rates, the European Central Bank will do so.
But Lagarde seems to want the governments of member countries of the euro zone to step up fiscal stimulus more than monetary policy. According to previous reports by foreign media, Lagarde also held an emergency conference call with the leaders of the European Monetary Union and the European Central Bank on the morning of the 11th, and called on officials to provide rapid financial support. Lagarde informed EU leaders that due to the new crown pneumonia epidemic, Europe is facing a crisis like 2008, and the economy will suffer a great deal. Urgent measures are needed now. She warned EU leaders that without bold action would increase the risk of some economic collapse.
At the same meeting, she also announced that the European Central Bank will take action as soon as this week, and policymakers are studying all the tools available at this week's meeting, in particular to provide "ultra-low-cost" funding and ensure liquidity Sex and credit don't run out of tools.
Some EU member states have already begun measures. The German side said that it was ready to abandon a balanced budget in response to the new crown pneumonia epidemic. Italy, the worst-affected country, has already acted, and Italian Finance Minister Roberto Gurtieri said on Wednesday that the Italian government has increased the amount of spending planned to ease economic shocks to 25 billion euros.
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