Lagarde: 'Reforms for Pnrr great opportunity for Italy'

BRUSSELS - Decisions on the forthcoming interest rate hikes by the ECB to "ensure that inflation returns to the medium-term target of 2% in a timely manner"

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"How far we need to go and how fast we need to get there will depend on our updated outlook, the persistence of shocks, the reaction of wage and inflation expectations, and our assessment of the transmission of our policy stance."

The president of the ECB Christine Lagarde says it in her speech to the economic and monetary affairs committee of the European Parliament.

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", explains Lagarde.

, which includes "a series of measures, a series of changes that must take place". "Our hope from the point of view of politics monetary policy is that these measures are implemented to help the Italian economy deal with the difficulties it was the first to face when Covid started to hit". "I think it is a great opportunity to demonstrate that from a budgetary and structural" there may be a "strong determination to lead Italy to a better economic situation", says the ECB president.

"I find it appropriate and timely for Italy to have a female prime minister for the first time and I wish her the best in the effort to actually lead the Italian economy."

In

in the last two years, particularly in terms of structural reforms, of improving the productivity of the Italian economy, consequently increasing its potential output. It is hoped that those structural measures will remain for a long time. This it will be necessary to demonstrate their efficiency for the economy", reported Lagarde when asked in the Econ commission at the European Parliament on the Italian economy, clarifying that she did not want to comment on the current Italian political situation: "

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In December, "we will outline the key principles for reducing bond holdings in our asset purchase program portfolio. The balance sheet should normalize over time in a measured and predictable manner."

This was stated by the president of the ECB, explaining that "interest rates are and will remain the main tool for fighting inflation".

"In the current context of high inflation, fiscal policy must be careful not to increase inflationary pressures", added Lagarde in her speech to the Economic and Monetary Affairs Committee of the European Parliament.

"Fiscal support should therefore be targeted, personalized and temporary."

"We also welcome the Commission's proposals to reform the EU's economic governance framework."

Lagarde says it in his speech.

are needed

not only to ensure medium-term debt sustainability, but also to support the three key transitions that will determine our future and our growth pattern: towards cleaner energy, greater economic security and a more digital and productive economy".

With respect to the price cap, "we will give an expert and weighted opinion", "to see what role we can play, how we can help and in what respect from the point of view of financial stability", but "not an opinion on the efficiency of the instrument" which it's not up to us.

"We certainly cannot act as substitutes for the political decisions that must be taken" and which concern "the political level and not the level of the European central bank".

"How much, how long and how high" rates will have to go up "is not something I have an idea about."

"I think it's interest rates that need to be high enough to deliver the medium-term 2% inflation target that we have."

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but it is something that, as I said, we will discuss meeting by meeting and on the basis of the data".

marking the highest since the end of June on the Bloomberg screens. the market weighed on the words of ECB president Christine Lagarde, who said that inflation had not reached its 'peak' and explained that "we will raise rates further. Shortly before, Dutch governors Klaas Knot and Spanish governors Pablo de Cos used by 'hawks' who could question expectations for a cautious rate hike, below 75 basis points, at the ECB meeting on 15 December.