Opening statement highlights from ECB President Lagarde:
- Market rates pose risk to wider financing conditions
- Inflation to pick up mostly due to transitory factors
- Rising rates could lead to premature tightening
- Financing conditions include risk free rates, and corporate borrowing rates
- Says ECB will purchase 'flexibly' and in response to market conditions
- Repeats that the ECB could increase PEPP pace or not use full envelop, depending on conditions
- Incoming data points to continued economic weakness in Q1
- GDP to contract again in Q1
- Risks have become more balanced but downside risks are higher in near-term
- Says oil one reason that inflation will be temporary higher but will fade early next year
- Core pressures to rise this year but will fade
- Once pandemic fades, sees gradual upward pressure on inflation
- Full text of the opening statement
