Lagarde opening statement: The economy remained weak in the first quarter

  • Production remains subdued, especially in energy-intensive industries
  • Expects to pick up in coming quarters
  • Gov’ts should continue to roll-back support
  • Tightness in labor market is gradually declining
  • Highlights falling food and energy price inflation, along with goods
  • Services price inflation remained high in March at 4%
  • More-recent indicators point to further moderation in wage growth
  • Inflation expected to decline to target next year
  • Risks to economic growth remain tilted to the downside
  • Growth could be higher if inflation comes down more than expected
  • Inflation could turn out higher if wages climb or profit margins remain elevated
  • If we achieve further confidence in outlook, it would be appropriate to lower rates
  • We are not pre-committing to a particular rate path

This article was written by Adam Button at Source