Let’s hold on to Christine Lagarde
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It’s true, when it comes to apologizing we are always ready to back down. This is the case with what happened with the surge in inflation in April which ended up justifying the cautious line adopted by the ECB, the same line much criticized in Italy. Cuckolded and mazziati, therefore, because many (including myself) had, in fact, distanced themselves from Christine Lagarde, president of the European Central Bank, who continued on the path of monetary tightening despite the optimism of the many “gurus”.
The proverbial prudence of the ECB
The usual music: why does Frankfurt continue to be cautious when, instead, there are signs of improvement on all fronts? Not even a doubt: apart from Mario Monti and a few others, we continued to insist on the fact that Europe should have been a little more courageous on rates in order to avoid the boomerang-like consequences. And down to criticize the “number one” of the Eurotower and regret Mario Draghi, the predecessor of Christine.
Inflation at +8.3%
However, it is never too late to correct the shot because, according to data from last April, inflation returned to sustained growth reaching +8.3% on an annual basis due, above all, to the new surge of energy tariffs. All the more reason, “Madame” was also cautious last Thursday when, in the wake of the Fed, it returned to raise rates, albeit only slightly, and also predicted that there will still be a long way to go.
Patuelli: the cost of living will fall again
In the meantime, certain distances have somewhat rarefied. There are few exceptions: among these, proving to be much more consistent than many others, the president of ABI, Antonio Patuelli, who, in an interview, reiterated the need to be careful not to slow down on the GDP front. Not only that: interviewed by me, he confirmed his prediction that the cost of living will fall again. And the other professionals? Almost absolute silence: at this point we really hope that last month’s inflationary surge was really a hiccup, the classic swallow that doesn’t make spring.
Lagarde swimming champion
The fact remains that what happened should, however, make us more cautious because the president of the ECB was right: in the light of the latest data and with the many variables on the table, starting with the economic implications of the war in Ukraine, prudence appears more than ever a must. Few perhaps remember that before arriving at the top of international finance (at the head of the Monetary Fund and therefore on the top floor of the Frankfurt skyscraper) Lagarde had been a swimming champion and had also been part of the transalpine national team: with certain waves in arrival, the life jackets that “Madame” will be able to throw will be providential. It is perhaps appropriate to say: let’s hold on to Christine.
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