ECB's Lagarde sees receding growth risk beyond short term By Reuters

ECB's Lagarde sees receding growth risk beyond short term

EconomyApr 08, 2021 05:50AM ET

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ECB's Lagarde sees receding growth risk beyond short term

FRANKFURT (Reuters) - The coronavirus pandemic will weigh on euro zone growth over the coming months but longer term risks are receding and growth will pick up once lockdown measures can be lifted, European Central Bank President Christine Lagarde said on Thursday.

"Overall, the risks surrounding the euro area growth outlook have become more balanced, although downside risks associated with the pandemic remain in the near term," Lagarde said in a statement that echoes the bank's policy stance after its March meeting.

Repeating the bank's standing guidance, Lagarde said that the 1.85 trillion euros set aside in a Pandemic Emergency Purchase Programme may not have to be spent in full but the ECB also reserved the right to increase this quota, if market conditions warrant.

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ECB's Lagarde sees receding growth risk beyond short term

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