Lagarde speech: Incoming data suggest that activity may have contracted in Q1


Christine Lagarde, President of the Europen Central Bank (ECB), is delivering her remarks on the monetary policy outlook in a press conference following the ECB’s decision to leave the policy settings unchanged.

Key takeaways

“Will continue to monitor foreign exchange developments.”

“Incoming data, surveys suggest that activity may have contracted in the first quarter.”

“Resumption of growth is expected in Q2.”

“Services activity is still limited but there are signs of bottoming out.”

“Downside risks remain in the near term.”

“Medium term risks are more balanced.”

“Headline inflation likely to increase in coming months.”

“Underlying price pressures to increase somewhat this year.”

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).

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