Lagarde: ECB is not Ready to Give Long-term Policy Pledges

The European Central Bank at its December meeting may agree on monetary policy for a relatively short period due to heightened uncertainty, but should not delay making a decision as markets need direction, said ECB President Christine Lagarde.Conservative officials are urging the ECB to avoid long-term commitments in December given high inflation and the escalating coronavirus pandemic, including the identification of a new omicron strain.Some of them are even discussing the possibility of postponing the decision until 2022, hoping that the prospects for growth and inflation will clear up by then.“There are ways to be clear without making long-term commitments, and I would rather not make very long-term commitments because there is too much uncertainty,” Lagarde said in an interview with Reuters Next."But we also have to signal very clearly that we are ready (to act) in both directions."Once the conditions for the rate hike are met, the ECB "will act without delay," Lagarde added.She previously said that increased inflation in the eurozone is still considered temporary and may have already passed its peak and will soon begin to slow down.

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