Market news
06.02.2020, 08:20

ECB President Lagarde: Low interest rate and low inflation has significantly reduced the scope to ease policy

  • Broadly in line with our expectations, the euro area economy continues to grow, though still with modest momentum.

  • The domestic economy remains relatively resilient.

  • Yet, global factors weigh on euro area growth.

  • To be sure, there are tentative signs of stabilisation, forward-looking indicators have become in slightly more optimistic

  • While uncertainties surrounding the global economic environment remain elevated, those related to trade tensions between the United States and China are receding

  • Other risks, however, are still lingering or - as for the uncertainty surrounding the impact of the coronavirus - are a renewed source of concern.

  • The overall moderate growth performance is delaying the pass-through from wage increases to prices and inflation developments remain subdued

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