Lagarde April 11
- Production remains subdued, especially in energy-intensive industries
- Expects to pick up in coming quarters
- Gov'ts should continue to roll-back support
- Tightness in labor market is gradually declining
- Highlights falling food and energy price inflation, along with goods
- Services price inflation remained high in March at 4%
- More-recent indicators point to further moderation in wage growth
- Inflation expected to decline to target next year
- Risks to economic growth remain tilted to the downside
- Growth could be higher if inflation comes down more than expected
- Inflation could turn out higher if wages climb or profit margins remain elevated
- If we achieve further confidence in outlook, it would be appropriate to lower rates
- We are not pre-committing to a particular rate path