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By Ulrike KASTENS, Economist DWS
Although we do not expect any surprises from the forthcoming Governing Council meeting, together with the press conference it provides a good opportunity to get a better sense of the convictions and priorities of the still relatively new President Christine Lagarde. This relates primarily to the medium to long-term time horizon, for which we believe Lagarde has a great drive. In the short term, however, the ECB has imposed too tight a corset on itself for changes in monetary policy parameters to be expected. The central bank is more or less on autopilot, and this course is also supported by the majority of the Council. Moreover, its "forward guidance" was recently formulated in such a way that the hurdles for change are very...
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