ECB: Lagarde Speech Highlights

Christine Lagarde, President of the Europen Central Bank (ECB), is delivering her remarks on the monetary policy outlook in a press conference following the ECB’s decision to leave the policy settings unchanged.

“Overal economic situation is expected to improve in 2021.”

“Uncertainty remains.”

“Persistently high COVID rates, lockdowns weigh on growth in the short term.”

“Containment measures are weighing on activity.”

“Inflation pick up is mostly due to transitory factors.”

“Underlying price pressures remain subdued.”

“Projections see a gradual increase in underlying inflation pressure.”

“Overall inflation outlook is broadly unchanged.”

“Financing conditions include risk-free rates, corporate borrowing costs among others.”

“Market rates pose risk to wider financing conditions.”

“Rates could lead to premature tightening.”

“Will continue to monitor exchange rates.”

“Incoming data point to continued economic weakness in the first quarter.”

“Real GDP is expected to contract again in the first quarter.”

“Risks are more balanced.”

“ECB sees 2021 GDP growth at 4.0% vs 3.9% seen in December.”

“ECB sees 2023 GDP growth at 2.1% vs 2.1% seen in December.”

“ECB sees 2022 GDP growth at 4.1% vs 4.2% seen in December.”

“Mutations are the source of downside risk.”

“Based on oil futures, inflation is expected to increase in the coming months.”

“Once the impact of pandemic fades, gradual upward pressure on inflation is expected.”

“ECB sees 2021 HICP inflation at 1.5% vs 1.0% seen in December.”

“ECB sees 2022 HICP inflation at 1.2% vs 1.1% in December.”

“ECB sees 2023 HICP inflation at 1.4% vs 1.4% seen in December.”

“Long-term inflation expectations remain subdued.”

“ECB is not bound by any specific number on Pandemic Emergency Purchase Programme (PEPP).”

“No number in mind for what significant PEPP increase means.”

“Total consensus on the PEPP pace decision.”

“Decision on faster purchase pace needed council nod.”

“ECB is not operating mechanically.”

“Convenient to decide on PEPP pace on a quarterly basis.”

“Governing Council not monitoring PEPP on weekly basis.”

“Don’t expect a big PEPP increase next Monday.”

“Large redemptions due on Monday.”

“We’re beginning to implement the decision as of today.”

“If necessary, the Governing Council can always meet.”

“Board can use flexibility to deliver on the decision.”

“ECB is not doing yield curve control.”