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ECB sees 'signs of stabilisation in growth slowdown': Lagarde

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The European Central Bank is seeing the first encouraging signs that the eurozone growth slowdown is stabilising despite "persistent global uncertainties", chief Christine Lagarde said Thursday.

[FRANKFURT] The European Central Bank is seeing the first encouraging signs that the eurozone growth slowdown is stabilising despite "persistent global uncertainties", chief Christine Lagarde said Thursday.

"There are some initial signs of stabilisation in the growth slowdown," Ms Lagarde told reporters in her first press conference as ECB president.

While manufacturing remained weak as trade tensions fester, the services and construction sectors remain "resilient", she said.

Ms Lagarde spoke about the ongoing weakness of international trade as persistent global uncertainties continues to weigh on the euro area manufacturing sector and is dampening investment growth."

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But she said the governing council stands ready to adjust instruments to ensure "that inflation moves towards its aim in a sustained manner in line with its commitment to symmetry."

"We will therefore closely monitor inflation developments and the impact of the unfolding monetary policy measures on the economy."

Turning to the ECB's monetary policy, Ms Lagarde reiterated the need for it to remain highly accommodative for a prolonged period of time.

AFP