Lagarde takes questions from reporters
- Our mandate is price stability
- To the extent that the euro rise affects prices negatively, this was discussed extensively
- We must monitor the euro carefully
- It's very likely that the full PEPP envelope will be used
- Spreads and yields are 'pretty much' back to pre-COVID levels
- Fiscal action was taken rightly, in a timely manner and efficiently
- We believe our monetary policy tools, as calibrated, have worked well
- Deflation risk was higher in June
The euro remains near the highs of the day at 1.1889.
The 1.35 trillion PEPP will "very likely" be used in full. There was a debate in the ECB about using the full allotment but it looks like the doves won.
On the currency, she didn't try to talk it down or weigh in on whether it was warranted.
