Very important comments from Lagarde relayed by Reuters :
- 13-Jan-2021 10:33:14 – REUTERS NEXT-ECB’S LAGARDE SAYS WANT TO ARRIVE AT DEGREE TO CLARITY, PREDICTABILITY WITH DEFINITION OF INFLATION TARGET
- 13-Jan-2021 10:34:09 – REUTERS NEXT-ECB’S LAGARDE SAYS NEED TO BETTER ACCOUNT FOR HOUSING COST IN INFLATION
As mentioned in our previous Global Macro Insight and in our Outlook, the Central Banks can’t keep the current calculation methodology of the inflation. The RBNZ paved the way for this revolution in December.
Governments want to stop the wave of populism in order to keep their jobs. The “social distancing” in terms of revenues is gigantic and leading to the radicalization of numerous potential voters…
Central Banks are feeling they could be designated as responsible for, due to their monetary policies that inflated only the financial assets and not household purchasing power…
Now, Central bankers are leading the way to modify how to compute inflation. The higher prices in Real Estate are a direct consequence of NIRP and ZIRP…
After these modifications, they could build the proper environment designating the inflation as THE responsible for any rate hikes…