Lagarde speech: ECB sees 2020 GDP growth at -8.7% in baseline scenario

Eren Sengezer FXStreet

Following the European Central Bank's (ECB) decision to expand its Pandemic Emergency Purchase Programme (PEPP) by €600 billion to €1,350 billion, Christine Lagarde, President of the ECB, is delivering her remarks on the monetary policy outlook in a press conference.

Key takeaways

"ECB sees 2020 GDP growth at -8.7% in baseline scenario vs +0.8% seen in March."

"ECB sees 2021 GDP growth at 5.2 % vs 1.3% seen in March."

"ECB sees 2022 GDP growth at 3.3% vs 1.4% seen in March."

"Projections include two alternative scenarios."

"Balance of risk around baseline is to downside."

About ECB President Lagarde

The European Central Bank's President Christine Lagarde, born in 1956 in France, has formerly served as Managing Director of the International Monetary Fund, and minister of finance in France. She began her eight-year term at the helm of the ECB in November 2019. As part of her job in the Governing Council, Lagarde holds press conferences in detailing how the ECB observes the current and future state of the European economy. Her comments may positively or negatively the euro's trend in the short-term. Usually, a hawkish outlook boosts the euro (bullish), while a dovish one weighs on the common currency (bearish).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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