Lagarde: We will very likely hike again in July

  • If baseline stands, we will likely hike in July
  • We still have ground to cover
  • We’re not seeing enough tangible evidence of stabilizing domestic inflation
  • We’re looking at as many indicators as we can
  • Q2 was not great for manufacturing
  • The European economy is ‘stagnant at best’
  • Manufacturing does not give a great hope for a strong recovery
  • Our baseline does not include a recession
  • Transmission of mon pol will be slower because there are more fixed-rate mortgages than 15 years ago
  • Resilience has been the theme so far

I’ll update headlines from the ECB.

This article was written by Adam Button at Source