Below are the highlights of the declaration of Christine Lagard, president ofThe European Central Bank, for delivery at the fifth meeting of the International Monetary and Financial Committee.
“The economy is reopening, the labor market continues to improve, high levels of savings accumulated during the pandemic can be used to cushion some of the energy price shock, and broad policy support remains in place.”
“Inflation will be higher if energy and other commodity prices rise further and new bottlenecks emerge in the supply chain.”
“We continue to carefully monitor risks to the inflation outlook.”
“Our monetary policy will depend on the incoming data and our assessment of the outlook.”
“In the current conditions of high uncertainty, we will keep the options open, gradualism and flexibility in the conduct of monetary policy.”
market reaction
These comments do not seem to have a significant impact on the performance of the shared currency against its main rivals. At time of writing, EUR/USD is trading at the 1.0900 zone, up around 0.50% on the day. The euro is among the best performing currencies, boosted by comments from the ECB’s vice president about the possibility of an interest rate hike in July.
Source: Fx Street
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