Slack Stock – Lagarde comments at ECB press conference
FRANKFURT (Reuters) – The European Central Bank maintained an elevated flow of stimulus as expected on Thursday, fearing that any retreat now would accelerate an already worrisome rise in borrowing costs and choke off the fledgling recovery.
Following are highlights of ECB President Christine Lagarde’s comments at a news conference after the policy meeting.
The progress with vaccination campaigns, which should allow for a gradual relaxation of containment measures, should pave the way for a firm rebound in economic activity in the course of 2021.
The near-term economic outlook remains clouded by uncertainty about the resurgence of the pandemic and the rollout of vaccination campaigns.
Persistently high rates of coronavirus infection and the associated extension and tightening of containment measures continue to constrain economic activity in the short term.
Progress with the vaccination campaigns and the envisaged gradual relaxation of containment measures underpin the expectation of a firm rebound in economic activity in the course of 2021.
Inflation has picked up over recent months on account of some idiosyncratic and temporary factors and an increase in energy price inflation.
Underlying price pressures remain subdued in the context of significant economic slack and still weak demand.
Euro area financing conditions have remained broadly stable recently after the increase in market interest rates earlier in the year. But risks to wider financing conditions remain.
We will also continue to monitor developments in the exchange rate with regard to their possible implications for the medium-term inflation outlook.
ThomsonReuters Global News Desk