In an interview with Andrés Stumpf, Stefan Reccius, Isabella Bufacchi, Guillaume Benoit and Alexandre Counis in Paris on 7 June, Christine Lagarde, President of the European Central Bank (ECB), spoke about forthcoming decisions on interest rates, noting that there could be periods when the Governing Council reverts to a wait-and-see approach, during which time it keeps key interest rates unchanged. She did not rule out the possibility that these phases might last longer than the duration of one meeting.
Ms Lagarde reiterated (see EUROPE 13425/1) that more data would be needed, particularly with regard to wages, productivity, and developments in unit profits and the way in which profits absorb a proportion of labour costs: three important factors that relate to inflation in the service sector, which is resisting deflationary trends in the euro area. In this respect, the salary tracking table will also be closely monitored.
On the same day, Philip R. Lane, a member of the ECB’s Executive Board, said that against this backdrop of uncertainty and ongoing strong pressure on prices, the ECB should maintain a restrictive monetary stance, still using the “meeting-by-meeting” approach, which is based on data. (Original version in French by Émilie Vanderhulst)