Comments from Lagarde
- Virus resurgence presents new challenges
- Consumers are cautious in light of pandemic
- Cites 'clear deterioration' in near-term outlook
- Virus is weighing on business investment
- Commits to keeping programs in place at least until covid is over
These are downbeat comments and certainly underscore that more action is coming in December. But how much ammunition do they have?
- High frequency data point to softer activity in Q4
- Inflation to remain negative until early 2021
- Recovery in demand to put upward pressure on prices
