“We expect that the rebound in demand, if accommodated with the full utilization of the accumulated labor force, will lead to an increase in productivity growth“said the president of the European Central Bank (ECB), Christine Lagarde, during her speech at the XXIV Conference on the ECB and its Observers, held on Wednesday in Frankfurt, according to Reuters.
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“We have to continue moving along the path of disinflation.”
“The compression of profit margins has allowed wages to catch up without further accelerating inflation.”
“Average wage growth in 2024 for all existing wage contracts fell from 4.4% at the time of our January Governing Council meeting to 4.2% at the time of our March meeting.”
“Given the delays with which data is available, we cannot wait until we have all the relevant information.”
“In the coming months, we expect to have two important pieces of information that could raise our level of confidence enough to adopt a first monetary policy measure.”
“The latest data points in the direction that wages are growing in a manner compatible with the extent of inflation.”
“The next few months will help us form an even clearer picture.”
“It is difficult to assess whether these price pressures simply reflect the mismatch between wages and service prices and the procyclical nature of productivity, or whether they signal persistent inflationary pressures.”
“Unlike previous phases of our political cycle, there is reason to believe that the expected disinflationary path will continue“
“If this data reveals a sufficient degree of alignment between the path of core inflation and our forecasts, we can move into the retreat phase of our policy cycle.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
