Lagarde speech: Inflation remains some distance below our medium-term aim

The growth momentum of the euro area has been slowing down since 2018 dur to global uncertainties and weaker international trade, European Central Bank (ECB) President Christine Lagarde said in her prepared remarks at the European Parliament's plenary session. 

"Moderating growth has also weakened pressure on prices, and inflation remains some distance below our medium-term aim," Lagarde added.

The EUR/USD pair largely ignored these comments and was last seen trading at 1.0907, down 0.02% on a daily basis.

Key takeaways

"Monetary policy cannot, and should not, be the only game in town."

"The longer our accommodative measures remain in place, the greater the risk that side effects will become more pronounced."

"When interest rates are low, fiscal policy can be highly effective."

"It can support euro area growth momentum, which in turn intensifies price pressures and eventually leads to higher interest rates."