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The European Central Bank’s (ECB) decided to leave key rates unchanged and expanded the Pandemic Emergency Purchase Programme (PEPP) by €500 billion to a total of €1,850 billion until the end of March 2022. Christine Lagarde, President of the ECB, is now delivering her remarks on the monetary policy outlook in a press conference.

Key takeaways

“Euro area economy is seen shrinking in Q4.”

“Service sector activity is severely curbed.”

“Inflation remains very low.”

“Incoming data suggest more pronounced near term impact of the pandemic.”

“PEPP envelope needs not be used in full.”

“Envelope can be recalibrated if needed.”

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).