- Rates will make a ‘substantial contribution’ to curbing inflation
- The eurozone economy remains weak
- Tighter conditions are weighing on investment and savings; highlights drag from industrial sector
- Economy is likely to remain weak for the remainder of this year
- There are signs that the labor market is weakening
- Food price inflation slowed again, though it remains high by historical standards
- Risks to economic growth remain tilted to the downside
- Domestic price pressures remain strong
- Credit dynamics have weakened further
The euro strengthened during the comments but it was all on the USD side as it broadly softens. I haven’t seen anything surprising from Lagarde’s comments, though she is a bit more upbeat on the outlook than I am.