ECB’s Lagarde: We Have Seen “Very Good Transmission” of Monetary Policy for Many Quarters

3 December 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank President Christine Lagarde said on Wednesday that the ECB had been witnessing a “very good transmission” of its monetary policy stance for many quarters.

Speaking to lawmakers on the European Parliament’s Economic and Monetary Affairs Committee in Brussels, Lagarde said the ECB was currently seeing “very good transmission of our monetary policy,” adding that this had been the case “for quarters and quarters.”

Asked if the ECB felt pressure from highly indebted countries to lower rates further, she said that the central bank monitored the inflation outlook, underlying inflation and transmission to decide on its monetary policy stance.

“And in particular, when it comes to public finances, it is not for the central bank to redress the public finances, or to accommodate any particular policy,” she said. “It is for those in charge of public finances to actually select the investment that will make the economy more productive while being attentive to the sustainability of the economy.”

Lagarde said that the ECB was “not fiscally dependent.”