Opening statement from ECB President Lagarde:
- Pandemic continues to cast a shadow
- Delta could dampen the recovery, particularly in services
- Inflation has picked up but it will be mostly transitory
- We stand ready to adjust all instruments
- Expect manufacturing to be strong
- Economy on track for strong growth in Q3
- There are 3.3m fewer people employed than before the pandemic
- We expect inflation to increase further in the coming months and to decline again next year
- Current increase in inflation is driven by base effects and energy prices
- Full text
Italian 10-year yields are down 5 bps and 5s are negative for the first time since April. There is some broader risk aversion creeping in at the same time.
The euro is at 1.1795, which is precisely where it was before the statement.