Lagarde speech: Wage pressures have strengthened further

Christine Lagarde, President of the European Central Bank (ECB), is delivering her remarks on the policy outlook and responding to questions from the press following the Governing Council's decision to hike key rates by 25 basis points in May.

Key takeaways

"Domestic demand, consumption, remained weak."

"We see divergence among sectors of the economy."

"Manufacturing prospects are worsening."

Government should roll back energy support measures."

"Price pressure remain strong."

"Services prices pushed up also by pent up demand."

"Wage pressures have strengthened further."

"Some firms also increased profit margins."

"Longer term inflation expectations warrant monitoring."

About ECB's press conference

Following the ECB´s monetary policy decisions, the ECB President delivers a prepared statement and responds to questions from the press on the policy outlook. Her comments may influence the volatility of EUR and determine a short-term positive or negative trend. Her hawkish view is considered as positive, or bullish for the EUR, whereas her dovish view is considered as negative, or bearish.