The head of the ECB took the phones from members of the Governing Council before the meeting – Kommersant

European Central Bank President Christine Lagarde seized the phones of 26 members of the Governing Council to prevent leaks. This happened during a meeting at which it was announced that Bundesbank Vice President Claudia Buch will head the ECB’s supervisory body, the Single Supervisory Board, reported Reuters with reference to two sources. The appointment of Ms. Buch to the ECB is official announced September 13. She will take office on January 1, 2024.

The agency’s interlocutors reported that the phones were returned to the members of the Council after Ms. Bukh’s candidacy was approved. According to sources, Ms. Lagarde decided to take the phones due to the fact that the news about the appointment of the current head of the Unified Supervisory Board, Andrea Enria, in 2018 hit the media before the official announcement.

Reuters notes that the decision of the head of the ECB to confiscate phones from board members was made after the agency published an exclusive report on September 13 material on the European Central Bank’s plans to raise its key inflation forecast this week to pave the way for higher interest rates. The Reuters publication influenced the forecasts of many economists and analysts, who expected that the ECB does not plan to raise rates, the agency notes. During the meeting, Ms. Lagarde condemned the leak, Reuters reported.

On September 14, the ECB increased interest rates by 25 basis points: now the rate on loans is 4.5%, on deposits – 4%, on margin loans – 4.75%. The increase, which could be the last in the current cycle of monetary tightening, is explained by the continued high level of inflation.

More details in the material “Rising to the Edge”.

Erdni Kagaltynov