ECB's Lagarde: Euro area activity has stagnated in recent quarters & likely to remain weak

<figure data-media-><img src="https://images.forexlive.com/images/Christine%20Lagarde_id_c005f7a2-5b54-4ad5-962b-d08c34abe6b7_size900.jpg" alt="Christine Lagarde" width="1061" height="703" wrapper-="wrapper-" data-src="https://images.forexlive.com/images/Christine%20Lagarde_id_c005f7a2-5b54-4ad5-962b-d08c34abe6b7_size900.jpg" /></figure><p><br></p><p>ECB's Christine Lagarde is on the wires:<br></p><ul><li>Observes that Euro area activity has stagnated in recent quarters and is likely to remain weak for the rest of the year.</li><li>Advises that it is premature to start declaring victory in the current economic scenario.</li><li>There are indications of potential job growth slowdown towards the end of the year,</li><li>Emphasizes the need to stay focused on the mandate of price stability, considering various forces affecting inflation.</li><li>Notes that wage pressures remain strong.</li><li>Looking beyond 2024, the ECB's Governing Council is committed to exploring ways to further decarbonize corporate portfolios.</li><li>Expects the weakening of inflationary pressures to continue.</li><li>States that the medium-term outlook for inflation is still surrounded by considerable uncertainty.</li></ul><p>EU&nbsp;flash CPI data will be released later this week with expectations of a move to 2.7% from 2.9% YoY which would be the lowest level since mid-2021. CPI inflation peaked in October 2022 at 10.7%.</p>

This article was written by Greg Michalowski at www.forexlive.com.