FRANKFURT, Sept 14 (Reuters) – The European Central Bank raised its key interest rate to a record peak on Thursday and signalled this will likely be its final move in a more-than year-long fight against stubbornly high inflation.
Following are highlights of ECB President Christine Lagarde’s comments at a news conference after the policy meeting.
SOME GOVERNORS WANTED TO PAUSE
“Some governors would have preferred to pause and reserve a future decision once more certainty, more intelligence has resulted from the passing of time and the impact of our many previous decisions.
“But I can tell you there was a solid majority of the governors to agree with the decision we have made.
“There are a few members of the Governing Council who would have preferred another one. We had to rely on a solid majority.”
INFLATION RISKS
“Upside risks to inflation include potential renewed upward pressures on the cost of energy and food, adverse weather conditions, and the unfolding climate crisis broadly could push food prices up by more than expected.”
RESILIENT LABOUR MARKET
“The labour market has so far remained resilient despite a slowing economy.”
INFLATION
“Inflation continues to decline, but is still expected to stay too high for too long.”
WEAKER SERVICES
“The services sector, which had so far been resilient, is now also weakening.”
PICK-UP OVER TIME
“Over time, economic momentum should pick up, as real income are expected to rise, supported by falling inflation, rising wages, and a strong labour market. And this will underpin consumer spending.”
GROWTH RISKS
“The risks to economic growth are tilted to the downside.”
SUBDUED ECONOMY
“The economy is likely to remain subdued in the coming months. It broadly stagnated over the first half of the year.”
(Reuters Global News Desk)
