ECB President Christine Lagarde said the financial markets may be overly optimistic about the economic outlook. “This makes valuations vulnerable to a range of possible negative surprises, whether from growth, inflation, monetary policy or corporate profitability,” she said.
Vice President Luis de Guindos said, “what we considered as our downside scenario in September, is coming closer to the baseline scenario… I think we are going to face a very difficult combination of low economic growth, including the possibility of a technical recession, and high inflation,”
Governing Council member Bostjan Vasle said, “We won’t stop at the neutral rate, we need to keep powering through… I’m of the opinion that we will have to go above the neutral level in order to calm inflation pressures, which are currently in the pipeline.
