Following the ECB’s decision to leave its official interest rates unchanged, its former president Jean-Claude Trichet welcomed a “good decision”. “It is a unanimous decision” of the board of directors “and it is already a lot that it is unanimous,” Jean-Claude Trichet stressed this Thursday on BFM Business. Furthermore, “it was a decision announced in advance, the markets did not at all expect that interest rates would increase,” he noted.
See you in December
Christine Lagarde “was right” to be “cautious” regarding the upcoming deadlines, stating that the pause in the increase in official rates “does not mean that [la BCE] I would never raise rates again.” “It makes no sense, at this moment, to previously announce either an eternal pause or a future increase, which would be unconditional, which would not be conditioned by new data,” estimated Jean-Claude Trichet, referring to “ a very important meeting” in December.
“The next meeting of the board of governors is extremely important because they will have their new projections [économiques]not only for 2024 but also for 2025,” he clarified. “However, the ECB’s objective is to reach around 2% [d’inflation] in the medium term. In the medium term, that clearly means 2025.”
Source: BFM TV
