Coverage of Lagarde’s Press Conference

The European Central Bank (ECB) decided to leave the interest rates on the main refinancing operations, the marginal lending facility, and the deposit facility unchanged at 0.00%, 0.25% and -0.50%, respectively, as was widely expected.

Christine Lagarde, President of the Europen Central Bank (ECB), is delivering her remarks on the monetary policy outlook at the post-meeting press conference:

Momentum has moderated but Eurozone continues to recover strongly.

Our analysis certainly does not support that the conditions of our forward guidance are satisfied at the time of lift-off as expected by markets, nor any time soon thereafter.

Expects inflation to rise further, then decline in 2022.

The grip of the pandemic has weakened.

Medium-term inflation is still seen below the 2% target.

Economy expected to exceed pre-pandemic level by year-end.

The phase of rising inflation will last longer than originally expected.

High energy prices may reduce purchasing power.

This reflects energy, recovery demand outpacing supply.