Christine Lagarde believes, however, that the moment of change can also be an opportunity to make the region’s economy more productive, competitive and resilient
The president of the European Central Bank (ECB), said that growth in the euro area could slow down in case of a new climbing in global commercial tensions and associated uncertainties, deterioration of financial market sentiment and persistent geopolitical tensions, in a speech prepared to participate in a session in the European parliament on Monday (23). “A rapid resolution of commercial and geopolitical tensions or a new increase in defense and infrastructure spending can boost the activity more than expected,” she suggested, emphasizing that risks to growth prospects remain inclined to the negative side and continue to face “exceptionally high” economic and political uncertainty. “With the foundations of global balance under pressure, the international financial system is also entering unknown territory,” he said.
For Lagarde, however, the moment of change can also be an opportunity and is the time to make the euro zone economy more productive, competitive and resilient. Still, according to the president of the PCC, Europe should reaffirm its role as a pillar of economic and political stability. According to her, for now, the risks of cryptors for the Eurozone’s financial stability seem limited, but the rapid pace of events, “coupled with data gaps that can create blind spots,” require more rigorous monitoring.
She stated that the Eurozone inflation is currently around the average target of 2% and that indicators suggest that inflation will stabilize in a sustainable way. Lagarde also argued that with current interest levels, the ECB is “in a good position to navigate the uncertain circumstances” and that the BC will follow the data -based approach and meeting meeting to determine the appropriate attitude of monetary policy.
GLOBAL POSITION OF THE EURO
The president of the European Central Bank also said that there is a possibility of euro raising its global position by answering questions in session in the European parliament. According to her, however, the dollar continues to be the main reserve currency, while the euro.
*With information from Estadão Content
Posted by Fernando
