Lagarde opening statement: Near-term economic outlook for the eurozone has deteriorated

  • Near-term economic outlook for the eurozone has deteriorated owing largely to weaker domestic demand
  • We will continue to follow a data-dependent path
  • Momentum is slowing in the service sector, though it remains a sign of strength
  • Housing and business investment are showing signs of weakness
  • Over time, improving supply conditions and falling inflation should support recovery
  • Many new jobs are being created, especially in services sector
  • Jobs may turn negative for manufacturing
  • As energy crisis fades, governments should roll back supports
  • Domestic price pressures, including from wages and profit margins, are becoming an increasing source of inflation
  • The outlook for economic growth and inflation remains highly uncertain
  • Upside risks to inflation include possible pressures on energy and food
  • Demand for mortgages has fallen for a fifth quarter in a row
  • We stand ready to adjust all instruments

The euro has been sagging during the press conference but some of that is because of the strength of the US dollar following strong data.

This article was written by Adam Button at Source