The best way for monetary policy to navigate the uncertainty caused by the war in Ukraine, rising energy and food prices and ongoing supply bottlenecks is to emphasise the principles of optionality, gradualism and flexibility, ECB president Christine Lagarde said Thursday.

“Optionality means that we are prepared to react to a range of scenarios, and the course we take will depend on the incoming data,” she said.

“Gradualism means that we will move carefully and adjust our policy as we receive feedback on our actions. Flexibility means that we will use our toolkit to ensure that our policy is transmitted evenly across all parts of the euro area,” she said.

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MNI BRIEF: Flexibility, Optionality Gradualism Key - Lagarde

Last updated at:Mar-30 09:14By: Luke Heighton
European Central Bank Market News+ 6

The best way for monetary policy to navigate the uncertainty caused by the war in Ukraine, rising energy and food prices and ongoing supply bottlenecks is to emphasise the principles of optionality, gradualism and flexibility, ECB president Christine Lagarde said Thursday.

“Optionality means that we are prepared to react to a range of scenarios, and the course we take will depend on the incoming data,” she said.

“Gradualism means that we will move carefully and adjust our policy as we receive feedback on our actions. Flexibility means that we will use our toolkit to ensure that our policy is transmitted evenly across all parts of the euro area,” she said.

Related by topic

European Central Bank Market News
European Central Bank
Eurozone
Europe
Homepage Section
DM Brief
Story Article