Lagarde speech: Euro area GDP could fall by between 5% and 12% this year

Eren Sengezer FXStreet

Following the European Central Bank's (ECB) decision to leave its interest rates unchanged, Christine Lagarde, President of the ECB, is delivering her remarks on the monetary policy outlook in a press conference.

Key takeaways

"Euro area facing a recession of unprecedented magnitude and speed in peacetime."

"Measures to contain virus have largely halted activity."

"Economic activity largely halted."

"Surveys have plunged, suggesting sharp contraction in growth."

"Scenarios suggest euro area GDP could fall by between 5% and 12% this year."

"Recovery speed uncertain."

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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