Ukrainian war, ECB: “Russian invasion is a watershed for Europe”

“Full support for Kiev, we will apply all sanctions”. Steady rates

The Russian invasion of Ukraine is a watershed for Europe“Thus, with an unprecedented geopolitical stance, the Governing Council of the ECB opens the statement following the monetary policy meeting. Expressing” full support for the Ukrainian people “, the ECB explains that – in this critical scenario -” it will guarantee conditions of regular liquidity e it will implement the sanctions decided by the European Union and European governments“, always taking” all necessary measures to fulfill the mandate “to protect price stability and safeguard financial stability. The ECB today decided to keep its reference rates steady.

ECB President Christine Lagarde presented herself at the press conference with a pin on her jacket with the flag of Ukraine. Opening her speech, Lagarde reiterated that the Russian invasion of Ukraine is “a watershed for Europe”.

“The Russia-Ukraine war will have a material impact on economic activity and inflation through rising energy and commodity prices, problems with international trade and weakening confidence,” Lagarde said. “The magnitude of these effects will depend on the evolution of the conflict, the impact of existing sanctions and any further measures,” he added, explaining that “in light of a highly uncertain scenario, the Governing Council assessed a number of scenarios in the today’s meeting “.

As expected the ECB has decided to keep its reference rates steady. As the Governing Council explains, in the note released after the monetary policy meeting, the interest rate on the main refinancing facility and the interest rate on the marginal lending facility and the deposit facility remain unchanged at 0.00%, respectively. , 25% and -0.50%.

As for any increases – it is reiterated – “they will take place after the end of net purchases” within the App “and will be gradual”. The indications of the Governing Council and its strategic commitment to stabilize inflation at two per cent in the medium term will always guide the trend in interest rates – continues the note -. “As a result, the Governing Council expects key ECB interest rates to remain at current levels until inflation reaches 2 per cent well before the end of its projection horizon and on a sustained basis for the remainder of the year. ‘projection horizon, and will believe that the progress achieved by underlying inflation is sufficiently advanced to be consistent with the stabilization of inflation at 2% over the medium term “.