2023-06-15 13:13:09
© Archyde.com. FILE PHOTO: European Central Bank (ECB) President Christine Lagarde delivers a speech in Cologne, Germany, May 16, 2023. REUTERS/Thilo Schmuelgen/File Photo
FRANKFURT, June 15 (Archyde.com) – The European Central Bank raised its key interest by 25 basis points on Thursday to 3.5% and left the door open to more hikes, extending its fight once morest high inflation even as the euro zone economy flags.
Following are highlights of ECB President Christine Lagarde’s comments at a news conference following the policy meeting.
INFLATION
“Inflation has been coming down but is projected to be too high, for too long.”
GROWTH RISKS
“Downside risks to growth include Russia’s unjustified war once morest Ukraine and an increase in broader geopolitical tensions which might fragment global trade.”
MONETARY POLICY EFFECT
“Growth might also be slower if the effects of monetary policy are more forceful than projected.”
HIGH PROFITS
“Firms in some sectors have been able to keep profits relatively high especially where demand has outstripped supply.”
CLOSELY MONITORING INDICATORS
“Although most measures of longer-term inflation expectations currently stand at around 2%, some indicators remain elevated and need to be monitored closely.”
ON THE ECONOMIC OUTLOOK
“The outlook for economic growth and inflation remains highly uncertain.”
UNEVEN ECONOMY
“Conditions in different sectors of the economy are uneven. Manufacturing continues to weaken, partly owing to lower global demand and tighter euro area financing conditions, while services remain resilient.”
WAGE PRESSURES
“Wage pressures are becoming an increasingly important source of inflation.”
ECONOMY STAGNATES
“The euro area economy had stagnated in recent months.”
WEAK GROWTH
“Economic growth is likely to remain weak in the short run but strengthen in the course of the year as inflation comes down and supply disruptions continue to ease.”
(Archyde.com Global News Desk)
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