Lagarde: "Consumer Prices Will Fall Significantly Due to Plunge in International Oil Prices"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Christine Lagarde, President of the European Central Bank (ECB), forecasted on the 22nd (local time) that "the consumer price index will significantly decrease over the coming months" in relation to the international oil price crash.

According to Bloomberg News, President Lagarde stated in a letter sent to members of the European Parliament that "the balance between downward pressure due to reduced demand and upward pressure caused by supply chain disruptions is subject to considerable uncertainty."

In a separate letter regarding bank loans, President Lagarde emphasized, "The ECB, along with European Union (EU) institutions and national governments, has announced various measures and is working diligently to assist businesses and households facing difficulties in borrowing due to the aftermath of the novel coronavirus infection (COVID-19)."

She also said, "The monetary policy meeting reiterates that it is currently not discussing 'helicopter money.'"

President Lagarde's remarks came a day before the EU summit scheduled for the afternoon of the 23rd. The meeting is expected to discuss countermeasures to prevent economic damage caused by COVID-19. In particular, the so-called 'corona bonds,' eurozone joint bonds, are anticipated to be on the agenda. There is significant disagreement between Southern European countries centered on Italy, Spain, and France, and Northern European countries such as Germany and the Netherlands.

This content was produced with the assistance of AI translation services.