ECB’s Lagarde: Euro area activity has stagnated in recent quarters & likely to remain weak

Christine Lagarde

ECB’s Christine Lagarde is on the wires:

  • Observes that Euro area activity has stagnated in recent quarters and is likely to remain weak for the rest of the year.
  • Advises that it is premature to start declaring victory in the current economic scenario.
  • There are indications of potential job growth slowdown towards the end of the year,
  • Emphasizes the need to stay focused on the mandate of price stability, considering various forces affecting inflation.
  • Notes that wage pressures remain strong.
  • Looking beyond 2024, the ECB’s Governing Council is committed to exploring ways to further decarbonize corporate portfolios.
  • Expects the weakening of inflationary pressures to continue.
  • States that the medium-term outlook for inflation is still surrounded by considerable uncertainty.

EU flash CPI data will be released later this week with expectations of a move to 2.7% from 2.9% YoY which would be the lowest level since mid-2021. CPI inflation peaked in October 2022 at 10.7%.

This article was written by Greg Michalowski at www.forexlive.com. Source