«We will review how we deliberate, how we measure and how we communicate»


Berlin

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There are no changes in interest rates or asset purchase transactions, but Christine Lagarde It has made it clear that it is willing to turn the ECB's operation upside down with its strategic review, which starts now and whose conclusions will be ready within a year. "We are going to review many issues, from how we deliberate, how we measure, what tools we have, to how we communicate," the Frenchwoman said during the press conference following the meeting of the first council of the year in Frankfurt. Lagarde will renew the standards managed so far and prevents the discourse of the entity from focusing on tensions between hawks and pigeons. And to prove it, he has attended the press conference with the only adornment of a gold brooch that contained an owl, personally chosen symbol of his neutrality in that dispute.

The president of the ECB has stated, in addition, that it remains "Moderate growth" in the euro area and explained that this fragile growth reflects "the weakness of international trade" in an environment of global uncertainties that negatively impact the manufacturing sector and investment. Consider that the trade agreement between the US and China "It has reduced uncertainty." In this sense it can have consequences in the assessment of downside risks for growth.

Another example of how much the ECB's communication is changing is the spontaneous and personal way in which it has come to value the recent meeting between the president of the European Commission, Ursula von der Leyen, and the US president, Donald Trump , in Davos. Lagarde has referred to conversations with von der Leyen, from which he has taken a very positive personal impression and that he has had no qualms about sharing with the press. He points out that, "although the results are preliminary," the conclusions are positive because negotiations will continue when von der Leyen visits the US in February.

And it has also adopted a different procedure to specify its plans to involve the ECB in climate protection. Instead of giving the details during the press conference, it has been sent to a statement that the ECB had subsequently published, thus depriving journalists of the opportunity to ask questions about data that they did not yet know during the appearance . Lagarde has limited himself to making clear that the climate will be part of this rethinking of strategic priorities. «Climate change is everyone's responsibility, wherever we are we must fight it. Several departments of the ECB are working to understand the impact of climate change on risk management, models and forecasts, ”he said,“ I know this will generate a debate about whether it is the ECB's role or not to address this issue, but the risk of doing nothing seems even greater.

For the peace of mind of the markets, Lagarde has confirmed the "forward orientation" of the indications that Eurotower provides on the future of rates: will remain "at equal or lower levels to the current ones until they see the inflation outlook converging firmly »towards the target values. And also the stimuli are confirmed: purchases of securities will continue at a monthly rate of 20 billion euros per month and "as long as necessary to strengthen the impact of accommodating their rates."

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