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ECB will not be dominated by fiscal considerations -Lagarde -Breaking


© Reuters. FILE PHOTO. Christine Lagarde, President of European Central Bank addresses a press conference after the meeting of the Governing Council on Monetary in Frankfurt (Germany), March 10, 2022. Daniel Roland/Pool via REUTERS/File Photo


LONDON (Reuters), ECB President Christine Lagarde stated Wednesday that the European Central Bank needs to focus on bringing inflation down to 2%. Policy should not be influenced by fiscal concerns.

Lagarde declared in a forum that it was impossible to give up fiscal dominance. We cannot surrender to financial dominance. Instead, we must fulfill our mandate which, many people know, is price stability.

The ECB said earlier Wednesday that it would limit the rising borrowing cost of members from the south because a loss in yields could impair policy transmission and hinder its ability to fight inflation.