Lagarde Says `Highly Accommodative Policy' Is Warranted by ECB

The transcript discusses the euro area's economic risks, particularly low inflation, and the need for accommodative monetary policy. It highlights the positive impact of unconventional policies but warns of potential side effects. The global low inflation environment poses strategic questions for central banks, requiring a deeper understanding of inflation dynamics and robust policy frameworks. Central banks face new challenges, including climate change and technological disruptions, necessitating forward-looking monetary policies. The ECB's role in financial stability has grown, with significant progress in bank supervision and risk reduction.

What are the near-term risks faced by the euro area economy?

How does the Governing Council view the current monetary policy?

What are the potential side effects of unconventional monetary policies?

What challenges do central banks face in the context of climate change?

How has the ECB's role in financial stability changed since the crisis?