Biggest surprise: Lagarde at the ECB - ING

Commenting on the latest political developments in Europe, Carsten Brzeski, Chief Economist ING Germany, argues that the biggest surprise among nominations was Christine Lagarde (France) as president of the European Central Bank and comments on what that means for the monetary policy in the eurozone.

"Hawk or dove? Actually, impossible to tell as Lagarde so far has not caught any attention with outspoken views on monetary policy."

"Christine Lagarde would probably be more of a moderator than an intellectual mastermind on monetary policy. In times, in which some ECB members have criticized too much inner circle decision-making, it would be a change."

"With Christine Lagarde, the ECB will get another excellent communicator. What kind of monetary policies Lagarde really stands for, no one can currently tell. In our view, a continuation of a pragmatic monetary policy stance as well as a confirmation of “whatever-it-takes” looks likely. Whether or not the ECB under Lagarde will also be willing to go as boldly as Draghi to where no European central bank has gone before will depend on the new balance of power between Executive Board and national governors."