4/22, 2:42 PM (Source: TeleTrader)
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Wider financing conditions risk remains - Lagarde

President of the European Central Bank (ECB) Christine Lagarde said on Thursday that, while euro area financing conditions have remained "broadly stable recently," risks to wider financing conditions remain, prompting the ECB's decision to reconfirm its accommodative policy stance. She warned the near-term economic outlook is "clouded by uncertainty about the resurgence of the pandemic and the rollout of vaccination campaigns" as high rates of coronavirus infections and measures to contain them "continue to constrain economic activity in the short term."

However, Lagarde said the continuation of immunization across the euro area and the gradual relaxation of restrictions "underpin the expectation of a firm rebound in economic activity in the course of 2021." She added that inflation has increased over recent months, but attributed the rise to "idiosyncratic and temporary factors and an increase in energy price inflation." Meanwhile, underlying price pressures "remain subdued in the context of significant economic slack and still weak demand."

Breaking the News / DJ