, Columnist
Is the ECB Ready for its Credibility Test?
The markets may have yawned when the central bank released its new inflation metrics but Lagarde has taken an important step in reestablishing efficacy.
Looking forward
Photographer: Carlos Costa/AFP via Getty Images
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The European Central Bank’s first strategy review in 18 years is about to get its first credibility test.
President Christine Lagarde has fired the starting gun for the implementation of the ECB’s new policy framework. Just over a week from now, it will issue updated forward guidance on policy rates. That will be in preparation for a fresh program of quantitative easing to replace the current pandemic sovereign bond purchases — which runs out in March 2022 — probably to be detailed in stages.