The President of the European Central Bank (ECB), Christine Lagarde, affirmed in the hearing of the Commission of Economic and Monetary Ausntos of the European Parliament, who continue to see the rebound in inflation as temporary. He added that inflation could turn out to be weaker than expected if economic activity were affected by a further tightening of restrictions.
Lagarde said they see limited signs of risk from stronger price pressures. “Our baseline scenario continues to forecast inflation to remain below our medium-term target,” he added. He explained that there are some factors that could lead to stronger price pressures than is currently expected.
On the economic recovery, Lagarde expressed that it is It is evident that activity in the Eurozone advances every time, although he clarified that growth prospects remain uncertain and largely dependent on the evolution of the pandemic. “We remain fully committed to preserving these favorable financing conditions,” the president clarified.