Economy

Lagarde comments at ECB press conference


FILE PHOTO: President of the European Central Bank (ECB) Christine Lagarde speaks as she takes part in a news conference on the outcome of the Governing Council meeting, in Frankfurt, Germany, October 28, 2021. REUTERS/Kai Pfaffenbach/File Photo/File Phot

FRANKFURT, Dec 16 (Reuters) – The European Central Bank cut support for the euro zone economy by another notch on Thursday but promised copious support for 2022, confirming its relaxed view on inflation and indicating that any exit from years of ultra-easy policy will be slow.

Following are highlights of ECB President Christine Lagarde’s comments at a news conference after the policy meeting.

EASING INFLATION

“Inflation is expected to remain elevated in the near term but should ease in the course of next year.”

BELOW TARGET

“The inflation outlook has been revised up, but inflation is still projected to settle below our 2% target over the projection horizon.”

HEADWINDS

“Energy prices have gone up significantly, and in some industries, there are shortages of materials, equipment, and labour. These factors are restraining economic activity and are a headwind for the near-term outlook.”

LABOUR MARKET IMPROVING

“The euro area economy continues to recover and the labour market is improving, helped by ample policy support.”

PICK-UP

“Growth is moderating, but we expect activity to pick up again strongly in the course of next year.”

(Reuters Global News Desk)

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