AGI – (AGI) – Rome, June 21st – The number one of the ECB Christine Lagarde, in front of the European Parliament, reiterates that the increase in inflation “will be temporary”, that the recovery of the European economy is accelerating but warns that a monetary tightening is not on the horizon, because it would be “premature”.
“The prospects for the euro area economy are brightening thanks to the improvement in the pandemic situation, the progress of vaccination campaigns and the increase in confidence. We expect economic activity to accelerate this quarter “ Lagarde said, according to whom “as the recovery accelerates, we must remain vigilant and ensure that political support continues to provide a bridge to the end of the pandemic and towards recovery. The European approach adopted during this crisis is a great achievement and should be further strengthened ”.
For this Lagarde, consider that a monetary policy tightening “would be premature and would jeopardize the ongoing economic recovery and inflation forecasts “. With regard to prices, the hot topic of these days, Lagarde points out that “inflation has increased in recent months in the euro area, largely due to temporary factors, including sharp increases in energy prices. . Headline inflation is expected to further increase towards the autumn, continuing to reflect temporary factors“.
Lagarde then focuses on the digital euro. “The digital euro – he says – is a project launched on an exploratory basis and on July 14 the board of directors will decide whether to move to a more active exploratory phase and proceed towards its creation.“. “We believe that the digital euro – he adds – could help Europe to take advantage of the digital transition” of payments, but the project “also involves risks” and “must be designed as an effective form of payment, not as a form of investment”.