Lagarde speech: We have no exchange rate target

Christine Lagarde, president of the ECB, spoke about the reasons for not changing key rates at the February policy meeting. She emphasized the importance of monitoring market and economic conditions, particularly stating that there are no specific exchange rate targets. This suggests that policymakers aim to avoid intervention in forex markets and act based on economic fundamentals. Lagarde assessed inflation and growth forecasts and highlighted the fluidity of the ECB's decision-making process. As a result, investors are likely to anticipate prompt reactions to potential changes in interest rates or volatility in the market, which may impact the value of the euro. Despite the current steady policy rates, attention is required on how the ECB's stance could influence forex markets, particularly as uncertainties continue to surround the economy. Lagarde's remarks will be crucial for assessing future market developments.