Comments from Lagarde at the ECB press conference
- Pandemic continues to constrain activity
- Near-term outlook remains clouded by uncertainty
- Vaccine underpins expectation of a 'firm' rebound in economic activity
- Inflation has picked up on idiosyncratic events but underlying pressure remains low
- Risks to wider financing conditions remain
- Governing council expects PEPP in this quarter to be conducted at significantly higher pace than in Q1 (repeat from statement)
- PEPP envelop need not be used in full if favorable financing conditions maintained; can also be boosted if needed
- GDP was 4.9% below pre-pandemic level at year end
- Economic may have contracted again in Q1 but points to resumption of growth in Q2
- Business investment has shown resilience
- Medium term risks more balanced
- Headline inflation likely to increase further in coming months
- Inflation expectations are at subdued levels
- Fiscal measures should be targeted and temporary
The euro was trading at 1.2045 just before she began speaking and edged up to 1.2054, perhaps on positive talk about the improving outlook.
