“The risks surrounding the euro area growth outlook over the medium term have become more balanced,” the European Central Bank (ECB) President Christine Lagarde said in her testimony before the Committee on Economic and Monetary Affairs of the European Parliament, in Brussels.
Additional comments
The ongoing vaccination campaigns, together with the gradual relaxation of containment measures underpin the expectation of a firm rebound in economic activity in the second half of 2021.
Downside risks remain in the near term.
Sizeable and persistent increases in market interest rates, when left unchecked, may become inconsistent with countering the downward impact of the pandemic on the projected path of inflation.
Purchases will be implemented flexibly according to market conditions.
There is no room for complacency.
The ECB will continue to deliver on its mandate and support the recovery with all appropriate measures.
Continue to monitor developments in the exchange rate regarding their possible implications for the medium-term inflation outlook. We stand ready to adjust all of our instruments.
Our key ECB interest rates to the governing council’s forward guidance and the asset purchase programme – make a crucial contribution.
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