Neither Hawk Nor Dove: The ECB’s Lagarde Suggests the Wisdom of an Owl

PGIM Fixed Income

December 2019

By Jürgen Odenius, PhD, Economic Counsellor, Macroeconomics Research Team

After presiding over her first Governing Council (GC) meeting, ECB President Christine Lagarde successfully held the policy line, thereby forestalling speculation that the ECB may quickly engage in further easing. At the same time, she carved out flexibility under the upcoming strategic review, outlining its broad scope while appropriately refraining from taking any views on its potential findings, thus avoiding hints about potential policy changes and cementing the status quo, at least for now.

In this context, Lagarde suggested that she is “neither a dove, nor a hawk” and would strive to be an “owl” that would hopefully bring some wisdom to future policy decisions.

 

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