EUR/USD-0.67%
Growth to weaken in 2022 and start of 2023 - Lagarde
European Central Bank (ECB) President Christine Lagarde said on Monday that the euro area growth is expected to continue weakening for the remainder of this year and the beginning of next year. The ECB will continue to monitor incoming data as it raises interest rates further "to the levels needed to ensure that inflation returns to our 2% medium-term target in a timely manner."
Lagarde stated the ECB will lay out its key principles for reducing the bond holdings in its asset purchase program portfolio in December. "It is appropriate that the balance sheet is normalized over time in a measured and predictable way," she said. She also noted that the unemployment rate is still at a historically low level, which is likely to support higher wages. The ECB will continue to assess their implications for the medium-term inflation outlook, Lagarde stressed.