The pandemic outbreak has had a great impact on the European economy. ECB President Christine Lagarde has expressed her concerns in the matter. And stated that they are in talks for bringing a minute change in the inflation target.
Christine Lagarde Raises Concerns Over Low Inflation Rates
In lieu of the coronavirus pandemic the Europe is going through tough times in terms of economy. The President of the European Central Bank Christine Lagarde has expressed her concerns in the matter. And has given has statement about the entire thing at a recent press conference.
And in her statement she gave the primary emphasis to the lower inflation rates. As she said that at this time of shattering economy the only way to get back to restore everything is by increasing inflation rates.
And that is because lower rates are actually adding more to the economic problems of the European nations. Moreover she also stated that the situation is quite worrisome because inflation rates are not at all stable.
During the ECB and its watchers Conference, Lagarde has given a hint that there might be a major change in the inflation policy of the nations. Moreover she also talked about how some measures taken by ECB will help to increase the inflation rates.
Talking of the policies the ECB is planning to adopt is that to get a detail strategy. And that is on how to deal with a situation when inflation rates are falling. And they reason a proper strategy is needed is that one should be prepared for ups and downs in the economy.
Moreover Lagarde has said that they might come up with some new policies which might help stabilizing the rise and fall in the inflation rates. Thus we can expect inflation rates to go a bit higher in the coming months.