⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

ECB’s Lagarde Seems Too Relaxed for Me. She’s Wrong!

Posted Thursday, March 12, 2020 by
Skerdian Meta • 1 min read

The European Central Bank (ECB) held its meeting a while ago. There were no expectations for a rate cut, but they could have as well delivered a surprise cut, like most other major banks have done. They didn’t but, Christine Lagarde speech sounded sort of worried today, but not as much as she should be. Although, they increased the stimulus measures. She made the following comments in her statement, following the rate decision from the ECB:

The virus is a major shock
Virus will slow down production and reduce demand
Calls for help from fiscal authorities
Ambitions, coordinated fiscal policy response needed
ECB measures will help smooth provision of credit
ECB stands ready to adjust all instruments
Latest indicators suggest considerably worse outlook
Necessary containment measures are adversely affecting activity
Growth moderated before the virus outbreak in manufacturing
Growth expected to regain traction in medium-term
Sees 2020 growth at 0.8% vs 1.1% but numbers pre-date coronavirus
Risks skewed ‘clearly’ to the downside for 2020 notably and also for 2021
Sees 2021 growth at 1.3% vs 1.4% prior
1.4% in 2022 vs 1.4% prior

Yes, she dares to make predictions right now, Really? Issuing GDP forecasts right now is so embarrassing. Just say you’re going to update them when they know more about the virus. We all know that the economy will just dive in the coming months, just like the Italian GDP which should contract considerably this month.

Check out our free forex signals

Follow the top economic events on FX Leaders economic calendar

Trade better, discover more Forex Trading Strategies