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Lagarde on growth

ECB
  • Q: Are you expecting a contraction in Q1 GDP? Was there a feeling in the Governing Council that you were tilting one way or another re use of the PEPP envelope; are you cautiously optimistic?
  • A: A decline in growth has been observed in Q4, which will spillover to Q1. The ECB had anticipated the continuation of containment measures. As such, the 2021 growth forecast is still broadly valid, although risks are tilted to the downside. There are not enough hard data yet to prompt any forecast revisions. Reiterates that the ECB wants to maintain favourable financing conditions and should be prepared for all options.

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