In a recent interview with Euronews, Agnès Bénassy-Quéré, the deputy governor of Banque de France, discussed the challenges facing central banks, particularly in light of the European Central Bank’s impending rate decision. Bénassy-Quéré highlighted the delicate balance that central banks must strike between supporting economic recovery and managing inflationary pressures.
She emphasized the need for central banks to communicate clearly and transparently with the public about their policy decisions, especially as uncertainties surrounding the global economy continue to persist. Bénassy-Quéré also stressed the importance of coordinating monetary policies across different central banks to ensure stability in the financial markets.
The interview comes at a critical time for central banks, as they navigate the ongoing economic impact of the COVID-19 pandemic and adapt their policies to support recovery. Bénassy-Quéré acknowledged that central banks are facing new challenges and must remain flexible in their approach to monetary policy.
As the ECB prepares to announce its rate decision, Bénassy-Quéré expressed optimism about the potential for a gradual normalization of monetary policy in the eurozone. She suggested that the ECB may need to adjust its policy stance in the coming months as economic conditions evolve.
Overall, the interview highlighted the complex and evolving role of central banks in today’s economic landscape. Bénassy-Quéré’s insights offer valuable perspectives on the challenges and opportunities facing central banks as they strive to support economic growth while maintaining financial stability.
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Photo credit www.euronews.com
