ECB's Christine Lagarde is on the wires:
- Observes that Euro area activity has stagnated in recent quarters and is likely to remain weak for the rest of the year.
- Advises that it is premature to start declaring victory in the current economic scenario.
- There are indications of potential job growth slowdown towards the end of the year,
- Emphasizes the need to stay focused on the mandate of price stability, considering various forces affecting inflation.
- Notes that wage pressures remain strong.
- Looking beyond 2024, the ECB's Governing Council is committed to exploring ways to further decarbonize corporate portfolios.
- Expects the weakening of inflationary pressures to continue.
- States that the medium-term outlook for inflation is still surrounded by considerable uncertainty.
EU flash CPI data will be released later this week with expectations of a move to 2.7% from 2.9% YoY which would be the lowest level since mid-2021. CPI inflation peaked in October 2022 at 10.7%.