Comments from the ECB leader:
- The outlook for the economy is indeed brightening
- Spread of virus mutations continues to pose a risk
- Brighter prospects for global demand and a faster than anticipated increase in consumer spending could result in an even-stronger recovery.
- Upward effect of underlying inflation pressures on headline inflation will be roughly counterbalanced by the expected decline in energy prices
- Tightening would be premature and would pose a risk to the ongoing economic recovery and the inflation outlook
Lagarde is a bit of a ray of sunshine to start the week. This is more upbeat than her recent comments. The euro is up 50 pips on the day but that's a story of broad USD weakness rather than the impact of these comments.
