The world’s two main central banks will not act in tandem in the near future as the war in Ukraine has different effects on their economies, European Central Bank President Christine Lagarde said on Monday.
The Federal Reserve raised interest rates in the United States last week and signaled a series of future moves, just days after the ECB said it was in no hurry to raise the deposit rate, which is at a record low, even as it continues to undo the stimulus.
“Our two economies are at different places in the economic cycle, even before the war in Ukraine,” Lagarde said at a financial conference. “For geographical reasons, Europe is much more exposed to war than the US.”
Lagarde said the US economy is less dependent than Europe’s on commodity imports and that their trade will also be less affected, so the two central banks will need to act out of sync.
“Our monetary policies are not going to act at exactly the same pace,” she said.
Source: CNN Brasil
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