ECB President Lagarde spoke on Saturday - expects euro zone faces 2 years of disinflation
European Central Bank President Christine Lagarde said the euro zone faces about two years of downward pressure on prices
- then a turnaround after that because the coronavirus crisis will accelerate the transformation of the economy
- expects greater digitization and automation, shorter supply chains
In the meantime though ECB to keep monetary policy exceptionally loose
- "the inflation dynamic will necessarily be impacted, probably with a disinflationary, deflationary aspect at first, and then an inflation dynamic"
Lagarde spoke in a virtual event webinar.