Modest momentum, but economy still growing - Lagarde

Thursday, 06. February 2020 09:27

"The domestic economy remains relatively resilient," President of the European Central Bank Christine Lagarde said Thursday, stressing that despite "tentative signs of stabilization," global factors, such as trade tensions between the US and China and uncertainty surrounding coronavirus, nevertheless weigh on the growth potential of the euro area.

Speaking before the Economic and Monetary Affairs Committee, the French economist pointed out that the overall moderate growth performance is "delaying the pass-through from wage increases to prices" while inflation developments remain subdued.

As a result, the eurozone economy still needs support from the ECB's monetary policy in order to "shield [it] from "global headwinds."

"The euro area economy continues to grow, though with modest momentum," Lagarde concluded.

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