The ECB changes the inflation target: now 2% "symmetrical".
Lagarde: "It's not a ceiling"
ECB: "The economy restarts with vaccines, rebound in the second quarter"
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July 22, 2021 In the euro area, "the economic recovery is on track, the number of vaccinated people is increasing and the lockdown measures are relaxed, but the pandemic continues to cast a shadow" on these prospects. This was stated by the president of the ECB, Christine Lagarde in the press conference at the end of the Governing Council, noting that "especially the Delta variant constitutes a great source of uncertainty".
The "rise in inflation" is only "temporary" says Lagarde according to which "the medium-term forecasts are still below the ECB's target".
"An ambitious and coordinated orientation of fiscal policies remains crucial since the premature withdrawal of their support would risk weakening the recovery and amplifying the effects of the scars left in the longer term", explained the president of the ECB, adding that "fiscal policies national governments should therefore continue to provide essential and timely support to businesses and households most exposed to the ongoing pandemic and associated containment measures ".
The ECB will be "patient", "none of us want a premature tightening" of monetary policy, the president said at the end of the board meeting.