FRANKFURT, Sept 10 (Reuters) – The European Central Bank raised its policy rate on Thursday for the second time this year, by a quarter point to 2.50%, seeking to quell an energy-driven rise in inflation triggered by the Iran war.
Following are highlights of ECB President Christine Lagarde’s comments at a press conference after the policy meeting.
NEAR-TERM GROWTH OUTLOOK
“Looking ahead, the near-term growth outlook has improved compared with the last round of staff projections, reflecting in particular the resilience of private consumption and public spending.”
RESILIENT ECONOMY
“The economy proved resilient in the second quarter, despite headwinds from the energy shock. Growth was broad-based across countries and sectors. This pattern is likely to have continued into the third quarter.”
INFLATION PRESSURES
“The conflict in the Middle East continues to generate inflation pressures, and inflation is set to remain well above target for an extended period.”
ON THE ECONOMIC OUTLOOK
“The outlook remains highly uncertain, with risks to the upside for inflation and to the downside for economic growth.”
(Reporting by Reuters Global News Desk)
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