Select Language

Lagarde speech: Wages, profits, trade tensions potential upside risks for inflation

blockHeadVisual
  1. HOME
  2. Get information
  3. World FX news
  4. Lagarde speech: Wages, profits, trade tensions potential upside risks for inflation

World FX news

search
Breaking news

Lagarde speech: Wages, profits, trade tensions potential upside risks for inflation

  • X
  • facebook
  • LINE
  • RSS
  • X
  • facebook
  • LINE
  • RSS
New update 2024.09.12 22:03
Lagarde speech: Wages, profits, trade tensions potential upside risks for inflation

update 2024.09.12 22:03

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB's decision to lower the benchmark interest rate by 25 basis points at the September policy meeting and responds to questions from the press.

Key quotes

"Negotiated wage growth will remain high and volatile for the rest of 2024."

"Overall labor cost growth is moderating."

"Unit labor costs expected to continue to decline."

"Risks to growth are skewed to the downside."

"Wages, profits, trade tensions potential upside risks for inflation."

ECB FAQs

The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.

In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets - usually government or corporate bonds - from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.

Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.

 

 

Date

Created

 : 2024.09.12

Update

Last updated

 : 2024.09.12

Related articles

Show more

Writer

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?
No loading Yes loading

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Previous article

prev

Lagarde speech: Fading monetary policy restriction should support economy

Next article

Lagarde speech: No commitment of any kind about October

prev

Most viewed

Australian Dollar firms up in Tuesday's session

The AUD/USD has regained ground in Tuesday's session and has attracted some follow-through buyers, climbing to a nearly two-week high of 0.6755.
New
update2024.09.18 05:24

Gold faces headwind as US Dollar and US yields climb

Gold prices fall ahead of the US Federal Reserve's (Fed) monetary policy decision on Wednesday as the Greenback stages a recovery following a strong (relative to consensus) August US Retail Sales report.
New
update2024.09.18 05:15

Canadian Dollar middles as bullish momentum goes on hiatus

The Canadian Dollar (CAD) settled into familiar territory in the midrange on Tuesday after unimpressive Canadian Consumer Price Index (CPI) inflation data failed to spark a bid in CAD flows.
New
update2024.09.18 04:34

Forex Today: What if the Fed...?

The Greenback managed to recoup part of the ground lost in recent days on the back of firmer results from US data releases, which helped quash somewhat concerns over a significant slowdown of the US economy, all prior to the Fed's interest rate decision on Wednesday.
New
update2024.09.18 03:36

US Dollar sees a little bounce ahead of Fed

The US Dollar remained stable at the start of the US trading session on Tuesday, showing little response to the release of Retail Sales data as anticipated.
New
update2024.09.18 03:36

Mexican Peso climbs following strong US data

The Mexican Peso erased some of its losses against the US Dollar, gains some 0.30% after US Retail Sales data was better than expected.
New
update2024.09.18 02:50

Dow Jones Industrial Average finds record high for second straight day

The Dow Jones Industrial Average (DJIA) rose into a fresh record high for the second day in a row on Tuesday as investors jostle for position ahead of the Federal Reserve's (Fed) hotly-anticipated rate cut during the midweek market session.
New
update2024.09.18 02:24

EUR/GBP Price Analysis: Bulls gather steam, aim for critical resistance

In Tuesday's session, the EUR/GBP rose by 0.28% to 0.8450 and extended its sideways trading range tracking the narrow-range movements of the past sessions.
New
update2024.09.18 01:10

GBP/USD Price Forecast: Retreats below 1.3200 on strong US data

The British Pound erased its earlier gains and dropped below 1.3200 against the Greenback after the US Census Bureau reported stronger-than-expected US Retail Sales.
New
update2024.09.18 00:12

DXY: The size of the Fed first cut doesn't matter much - DBS

The Dollar Index (DXY) depreciated a third session by 0.4% to 100.76, approaching 100.55, the year's weakest close on August 27, DBS FX strategist Philip Wee notes.
New
update2024.09.18 00:07

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

arw
  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Line

Line
Facebook

Facebook
X

Twitter
Cancel