Lagarde opening statement: Past hikes are increasingly dampening demand

  • Rates will make a ‘substantial contribution’ to curbing inflation
  • The eurozone economy remains weak
  • Tighter conditions are weighing on investment and savings; highlights drag from industrial sector
  • Economy is likely to remain weak for the remainder of this year
  • There are signs that the labor market is weakening
  • Food price inflation slowed again, though it remains high by historical standards
  • Risks to economic growth remain tilted to the downside
  • Domestic price pressures remain strong
  • Credit dynamics have weakened further

The euro strengthened during the comments but it was all on the USD side as it broadly softens. I haven’t seen anything surprising from Lagarde’s comments, though she is a bit more upbeat on the outlook than I am.

This article was written by Adam Button at Source