ECB: Lagarde: Main monpol instrument is not QT

Mar-06 14:37

Q: TLTRO repayments stopping and reinvestment also stopping are cold water in your analogy. Is the GC taking into consideration of quantifying QT impact on mon pol?
A: QT is a process that has taken place very smoothly and has been absorbed by markets in an innocuous way over the course of time. We don’t regard that for the course of mon pol primarily. It’s been well telegraphed. The main monetary policy instrument that we have used recently and will be the driving force is interest rates and not QT or otherwise such financing programmes. We do try to work with counterfactuals and Cipollone has tried to exactly calculate this, but it’s not our key instrument and isn’t perceived to have a significant impact.
Q: On digital euro, the Trump administration has decided to stop the Fed’s similar project. What is the position on a digital currency?
A: Nature doesn’t’ like a vacuum. We started working on a digital euro way back, when I started my term five years ago. We have a good team looking at accelerating the pace. Talking to all the stake holders so we can eventually put to reality this digital euro. The deadline for us is Oct 2025 and we’re getting ready for it, but we can’t move unless the other parties (Commission, Council and Parliament) complete the legislative process. It seems to be more imperative than ever before.

Want to read more?

Find more articles and bullets on these widgets:

Feb-04 14:27

SPX: 6,002.2 (+0.1%); DJIA: 44,373 (-0.1%/-49pts); NDX: 21,341.8 (+0.2%).

Feb-04 14:25

FX Exchange traded Option, looking for CAD strength, covers Employment Data:

Feb-04 14:24

-4,000 SFRM5 95.75/95.87 put spds 2.75 over SFRJ5 95.68/95.81 put spds
+2,500 SFRZ5 95.50 puts, 10.5 vs. 96.015/0.24%
-2,500 SFRZ5 96.00/96.50/97.00 call fly w/ 95.00/95.50/96.00/96.60 put condor, 35.25 total ref 96.02
+10,000 SFRH5 96.25 calls vs -5,000 SFRK5 97.00 calls, 0.25 net

BUND TECHS: (U4) Strong Tuesday Close, Exposes Resistance

GERMAN DATA: June Factory Orders Beat Defies Weaker Sentiment Data

MNI US Credit Weekly

Mar-27 20:13

MNI US Macro Weekly: Weighing The Costs Of Conflict

Mar-27 19:55

MNI EGB Issuance, Redemption and Cash Flow Matrix – W/C 30 Mar

Mar-27 17:19