Commenting on the European Central Bank's latest policy decision, its president Christine Lagarde noted that the Eurozone's economic recovery continues to face headwinds but is expected to strengthen over time. She added that fading monetary policy restrictions should support the region's economy.
The ECB's chief also admitted that the euro-area jobs market remains resilient but surveys point to further moderation in demand for labour.
Regarding price growth, Lagarde said that goods inflation and services inflations move in opposite directions and warned that inflation could turn out higher than anticipated if wages or profits increase more than expected.
Also, she stated that the risks to the Eurozone's economic growth remain tilted to the downside but suggested that growth could be higher if inflation comes down more quickly than expected, or the world economy grows more strongly than forecast.
Lagarde also stressed that the ECB's rate path is not pre-determined either in terms of sequence or in terms of volume. According to her, the ECB's policymakers will continue to follow a data-dependent and meeting-by-meeting approach to determining the appropriate level and duration of restriction.