Lagarde speech: There is no stagflation

Christine Lagarde, President of the European Central Bank (ECB), explains the ECB’s decision to lower key rates by 25 basis points at the January policy meeting and responds to questions from the press.

Key quotes

“There is recovery.”

“Economy is not at potential yet.”

“There is no stagflation.”

“Yield increase is a global process spilled over from United States.”

“Yield increase doesn’t stop monetary policy from transmitting.”

“Debate about neutral rate is entirely premature.”

“I cannot tell you if we have to go below neutral.”