Lagarde opening statement: Past hikes are increasingly dampening demand

<ul><li>Rates will make a 'substantial contribution' to curbing inflation</li><li>The eurozone economy remains weak</li><li>Tighter conditions are weighing on investment and savings; highlights drag from industrial sector</li><li>Economy is likely to remain weak for the remainder of this year</li><li>There are signs that the labor market is weakening</li><li>Food price inflation slowed again, though it remains high by historical standards</li><li>Risks to economic growth remain tilted to the downside</li><li>Domestic price pressures remain strong</li><li>Credit dynamics have weakened further</li></ul><p>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.</p>

This article was written by Adam Button at www.forexlive.com.