Lagarde speech: Developments in exchange rate may have negative impact on path of inflation

Christine Lagarde, President of the European Central Bank, is delivering her remarks at the ECB Forum on Central Banking 2020.

Key quotes

"Developments in the exchange rate may have a negative impact on the path of inflation."

"If this second wave of the virus proves to be less intense than the first, it poses no less danger to the economy."

"Even if this second wave of the virus proves to be less intense than the first, it poses no less danger to the economy."

"Fiscal policy has to remain at the centre of the stabilisation effort."

"While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved."

Market reaction

The EUR/USD pair continues to trade in the negative territory near 1.1760 after these remarks.