Privacy crisis at the ECB: Lagarde confiscated mobile phones

European Central Bank (ECB) President Christine Lagarde confiscated policymakers’ mobile phones at this week’s meeting and scolded them for leaking key information ahead of a policy decision, two sources told Reuters.

The ECB announced its interest rate decision this week and the bank increased the interest rate by 25 basis points. The ECB increased the deposit rate to 4 percent, the main refinancing rate to 4.50 percent and the overnight lending rate to 4.75 percent. Thus, the bank increased interest rates for the tenth consecutive meeting and brought the interest rate to a record level.

PHONES WERE ADVISED

According to sources familiar with the matter, on Wednesday, the first day of the meeting, 26 members of the Government Council were forced to hand over their mobile phones. It was reported that Claudia Buch’s devices were returned following the announcement of her candidacy for the chairmanship of the Supervisory Board.

The election of current President Andrea Enria in 2018 was covered by the media before being officially announced. It is believed that this experience influenced the seizure of phones.

LAGARDE GOT ANGRY

Reuters also announced this week that the ECB would increase its inflation forecast. Most economists expected the ECB to keep interest rates stable. But opinions changed after the Reuters report was published late on Tuesday.

Lagarde condemned the leak at the start of the two-day meeting, a criticism echoed by many of her colleagues. Lagarde also asked managers to keep internal disputes away from the media and put their phones aside while colleagues talk.

‘KEEP YOUR PERSONAL OPINIONS’

Last year, Lagarde also established guidelines instructing her colleagues to present the majority opinion to the public after the ECB’s policy decisions are published on Thursdays and to reserve their personal opinions until the following Monday.