I would first like to warmly thank David Wright and Didier Cahen for once again organising this impressive Eurofi event, this time in the magnificent city of Budapest, and for exceptionally allowing me to speak remotely.
I. An obvious but important monetary policy decision
We decid yesterday on a second rate cut. Our Governing Council l by Christine Lagarde took a unanimous decision, as it was solidly support by the economic data. Inflation is moving according to our projection, which we have not chang by a single decimal place (for the first time in almost 20 quarters): we are at 2.2% in August, and we should reach 2% sustainably by the second half of next year. Moreover, market expectations for inflation – both from the fixing and from the options market – are now well below our own forecast, but time will tell.
On activity , the latest data hong kong email list are somewhat disappointing, with growth mainly resulting from net exports and government consumption, while private domestic demand has weaken. High uncertainty and low confidence continue to favour savings rather than household consumption or business investment. In this regard, the Banque de France will publish its forecasts for France on September 17, and beyond the one-off boost given by the success of the Olympic Games, they should be consistent with this prospect of a very gradual recovery.
So our decision is also bas on sound risk management
Unlike the Unit States, our visitors here you will have several ways mandate is not dual (price stability/full employment), but it is clearly symmetrical around be numbers our 2% target: we must be attentive to the risk of missing our target from below as much as to that of exceing it.
