As Christine Lagarde Prepares to Take Over, she Defends the European Central Bank’s Low Rates

Christopher Zenios14/09/20192min
Christine Lagarde was nominated by European governments to succeed Mario Draghi and is set to take her position on the 1st of November. As Lagarde prepares for her role, she has defended the banks lowest rates and other measures.

Lagarde is set to take over just as Britain is set to fulfil Brexit and leave the EU, commenting on the job Lagarde has recognised it requires a commitment to the basic mandate to keep prices stable and the “agility” to come up with new ways to meet unforeseen trouble.

Lagarde has also voiced her support of other measures taken by the European Central Banks during uncertain times such as bond purchases and negative interest rates which have received criticism, particularly from Germany.

However, Lagarde has defended the decision by explaining that the measure has contributed to creating 11 million new jobs since 2013 thus easing financial turmoil. Without these measures, she commented

the crisis would have been a lot worse,

going on to to agree that economy would need monetary support “for an extended period of time.”

Lagarde has stated that her main goal is to communicate clearly the bank’s decisions to the public as while financial markets will most probably understand the bank’s decision she stated, “I want the people of the euro area to understand why decisions are being made.”

Christine Lagarde is not an economist however her knowledge of finance is well versed due to a previous position of French finance minister and head of IMF, where she instructed staff to improve communication specifically to stop using confusing terms.

Following these roles, Lagarde is now nominated for a non-renewable 8-year term at the European Central Bank basses in Germany. The bank’s role is to set interest rates and benchmarks while supervising 19 EU member countries that all use the euro. Policies set at the ECB impact inflation, employment, business costs and many other aspects such as stocks and bonds.

Recently in Europe, despite uncertainty, many have discussed why it’s a good time to invest in European Real Estate.

 

Image Source by Financial Times

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at [email protected] for editorial related questions.



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