On Wednesday 20 March, the President of the European Central Bank (ECB), Christine Lagarde, reiterated that the ECB had moved into a ‘holding’ phase of the monetary policy cycle, following a phase characterised by ‘tightening’.
The President noted that significant progress had been made on the three criteria for the reaction function (apart from domestic inflation, which is resisting), but reiterated that the ECB was not yet sufficiently confident in the sustainability of the path...