Lagarde speech: Further sustained recovery highly dependent on evolution of pandemic

Following the European Central Bank's (ECB) decision to leave its key rates and the €1,350 billion Pandemic Emergency Purchase Programme (PEPP) unchanged, Christine Lagarde, President of the ECB, is delivering her remarks on the monetary policy outlook in a press conference.

Key takeaways

"Will monitor fx rate."

"Incoming data indicate continued recovery."

"There are signs of recovery in consumption."

"Momentum slowed in the services sector."

"Coronavirus case infections constitute headwinds to short term outlook."

"Further sustained recovery highly dependent on the evolution of pandemic."

"Projections also include alternative scenarios."

"Growth risks tilted to the downside."

"Headline inflation is expected to remain negative in the coming months."

"Inflation to turn positive in early 2021."

About ECB President Lagarde

The European Central Bank's President Christine Lagarde, born in 1956 in France, has formerly served as Managing Director of the International Monetary Fund, and minister of finance in France. She began her eight-year term at the helm of the ECB in November 2019. As part of her job in the Governing Council, Lagarde holds press conferences in detailing how the ECB observes the current and future state of the European economy. Her comments may positively or negatively the euro's trend in the short-term. Usually, a hawkish outlook boosts the euro (bullish), while a dovish one weighs on the common currency (bearish).