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The European Central Bank (ECB) decided to leave key rates and the size of its Pandemic Emergency Purchase Programme (PEPP) at the end of its monetary policy meeting held this Thursday. The ECB President, Christine Lagarde is now addressing the post-meeting press conference on considerations underlying these decisions.

Key Quotes:

  • Pandemic to weigh on activity in 1Q21.
  • Economic developments uneven.
  • Consumers remain cautious.
  • Rollout of vaccines allows for greater confidence.
  • It will take time to reach widespread immunity.
  • Risks to growth outlook tilted to downside.
  • Downside risk less pronounced.
  • Inflation likely to increase in coming months.
  • Underlying price pressures subdued.
  • Once pandemic fades, upward pressure on inflation over medium term.

About ECB President Lagarde

The European Central Bank’s President Christine Lagarde, born in 1956 in France, has formerly served as Managing Director of the International Monetary Fund, and minister of finance in France. She began her eight-year term at the helm of the ECB in November 2019. As part of her job in the Governing Council, Lagarde holds press conferences in detailing how the ECB observes the current and future state of the European economy. Her comments may positively or negatively the euro’s trend in the short-term. Usually, a hawkish outlook boosts the euro (bullish), while a dovish one weighs on the common currency (bearish).