CHRISTINE LAGARDE

The following is a transcript of an interview with Christine Lagarde, president of the European Central Bank, that aired Sunday, April 24, 2022, on "Face the Nation."

Asian shares have mostly retreated, tracking losses on Wall Street after Federal Reserve Chair Jerome Powell indicated increases in interest rates must be faster to fight inflation.

The Federal Reserve must move faster than it has in the past to rein in high inflation, Chair Jerome Powell said, signaling that sharp interest rate increases are likely in the coming months, beginning at the Fed’s next policy meeting in May.

Federal Reserve Chairman Jerome Powell speaks Thursday on a panel presented by the International Monetary Fund. CNBC's Sara Eisen will moderate the talk.

The head of the European Central Bank says the bank would raise interest rates “some time after” ending its pandemic stimulus efforts later this year.

The central bank needs some new tools to navigate the unique challenges that are likely to confront the euro-zone economy.

European Central Bank President Christine Lagarde has tweeted that she tested positive for COVID-19 and has mild symptoms but will continue working at home.

The European Central Bank's president says no data currently suggests that Europe will fall into stagflation, which is a combination of high inflation, little or no economic growth and high unemployment.

European governments are slashing fuel taxes and doling out tens of billions to help consumers, truckers, farmers and others cope with spiking energy prices made worse by Russia’s invasion of Ukraine.

The central bank is taking the risky step of curbing stimulus even as the outlook for growth dims.

European Central Bank President Christine Lagarde is giving a press conference after the bank's latest monetary policy decision.

The ECB's meeting in Frankfurt, Germany comes exactly two weeks after Russian President Vladimir Putin launched a full-scale invasion of Ukraine.

The European Central Bank says it will make an earlier exit from its economic stimulus program as it combats unexpectedly high inflation.

Accelerating inflation combined with slowing growth should keep euro zone policy on hold for now.

Policy makers are beginning to worry that raising the cost of borrowing too quickly could have dire consequences.

Asian shares are mostly higher as investors try to gauge U.S. inflation, tensions between Russia and Ukraine and the impact of the pandemic.

Australia’s central bank governor is taking his time to assess inflation. He may be on to something.

Philip Lowe is depicted as a lone central banker standing against the tide of higher borrowing costs. That’s an oversimplification.

Rising yields threaten to tighten monetary conditions before the euro-zone economy is able to cope with higher borrowing costs

Asian stocks are higher after Wall Street rebounded as investors waited for U.S. inflation data that might influence the pace of Federal Reserve interest rate hikes.

European Central Bank President Christine Lagarde is giving a press conference after the bank's latest monetary policy decision.

The European Central Bank has kept key interest rates unchanged despite record rises in inflation.

The head of the European Central Bank says record inflation could linger for “longer than expected” and appeared to open the door at least a crack for an interest rate increase this year.

Inflation in the euro zone surprised markets Wednesday, notching a new record high and piling yet more pressure on the European Central Bank to act.

Inflation fed by high oil and gas prices hit record levels in Europe for the third month in a row.

It’s a delicate time and she needs to push back on rate-hike expectations while not dispelling them completely.

Government and business leaders have urged global cooperation on climate change, the coronavirus pandemic and the economic recovery at the World Economic Forum’s virtual gathering this week.

Inflation in the euro area is unlikely to surge to levels seen in the U.S., European Central Bank President Christine Lagarde said on Friday.

CNBC's Geoff Cutmore explores the global economic outlook for 2022.

Eurogroup finance chiefs are engaged in a high-wire political balancing act prompted by conflicting economic forces: a weaker growth outlook and stronger inflation.

This New Year's the European Central Bank is celebrating the 20th anniversary of the euro's notes and coins.

The United Kingdom’s central bank has become the first in a major advanced economy to raise interest rates since the coronavirus pandemic began.

The European Central Bank has decided not to abruptly pull back its pandemic support for the economy as the new omicron variant of COVID-19 stirs uncertainty about the continent’s recovery.

Flashing amber at the BOE for withdrawing stimulus, with a green light at the Fed and red at the ECB.

The euro has cratered over the past month as a resurgence of Covid-19, European Central Bank policy divergence and political uncertainty converge.

The head of the European Central Bank is doubling down on the message that it's no time to raise interest rates.

European Central Bank President Christine Lagarde is giving a press conference after the bank's latest monetary policy decision.

The European Central Bank decided Thursday to keep interest rates and its monetary policy stance unchanged despite ongoing inflationary pressures.

The European Central Bank has decided to keep its pandemic stimulus efforts unchanged even as consumer prices spike and central banks in other parts of the world look to dial back support as their economies bounce back from the worst of the COVID-19 outbreak.

Slowing growth and higher inflation could render October's ECB meeting more eventful than originally anticipated.

The head of Germany’s central bank has announced that he will step down after a decade at the helm.

Anyone worried about surging price increases should consider the latest numbers from Beijing.

The embattled head of the International Monetary Fund is pledging renewed efforts to bolster data integrity while focusing on the main job of helping countries recover from a devastating global pandemic.

The head of the International Monetary Fund says a report alleging she had a role in data-rigging at the World Bank when she was a top official there was not an accurate representation of events.

The European Union’s statistics agency says sharply higher oil and gas prices have helped push annual inflation in the 19 countries that use the euro to its highest in more than a decade.

Higher inflation data comes as lawmakers fret about soaring energy prices.

European Central Bank head Christine Lagarde says Europe's monetary authority isn't about to “overreact” to temporary inflation by tightening policy.

ECB President Christine Lagarde has told CNBC that she thought her tenure at the Frankfurt-based institution would have been a bit "more quiet."

It comes at a time when global stock markets are on high alert over Evergrande's massive debt problems.

Stocks ended an up-and-down day lower on Wall Street, giving the S&P 500 its fifth consecutive loss and its first weekly decline after two weeks of gains.

The European Central Bank says it is dialing back some of its massive emergency pandemic support for the economy.

The Fed has already signaled it is likely to start tapering before year end. In the euro zone, a similar announcement could be just around the corner.

European Central Bank President Christine Lagarde is giving a press conference after the bank's latest monetary policy decision.

Facing unease over the spread of a more-contagious variant of the coronavirus, the European Central Bank said it would maintain its stimulus in the form of ultra-low interest rates until inflation “durably” reaches its 2% target.

The European Central Bank on Thursday held monetary policy steady, but tweaked its guidance to reflect its recently-hiked inflation target.

The European Central Bank announced Wednesday that it's starting work toward creating a digital euro currency as more consumers ditch cash.

Asian stock markets have risen after Wall Street hit a high despite jitters about the spread of the coronavirus’s delta variant, as investors looked ahead to U.S. earnings reports.

Asian stocks have followed Wall Street higher ahead.

U.S. President Joe Biden's proposal for a global minimum corporate tax will get another going over at a meeting of top finance officials.

In a major policy review presented on Thursday, the European Central Bank decided to revise its inflation target and allow consumer prices to overshoot when deemed necessary.

Notable speakers include Christine Lagarde, the president of the European Central Bank, and President of Ethiopia Sahle-Work Zewde.

Notable speakers include Christine Lagarde, the president of the European Central Bank, and President of Ethiopia Sahle-Work Zewde.

The European Central Bank is leaving its key pandemic support for the economy running full blast even as the economy shows signs of recovery thanks to lower virus cases and fewer restrictions on activity in the 19 countries that use the euro currency.

The European Central Bank left its key pandemic support for the economy running full blast even as the economy shows signs of recovery thanks to lower virus cases and fewer restrictions on activity in the 19 countries that use the euro currency. ECB President Christine Lagarde was at pains to underline that there was no discussion at Thursday's policy meeting about dialing back support in coming months. Speaking at a news conference after the decision by the bank's 25-member governing council, Lagarde said the central bank expects “a sizeable improvement” over the second quarter of the year.

The European Central Bank is likely to say it's too early to withdraw its stimulus at its meeting on Thursday.

The European Central Bank is expected to leave its stimulus efforts running at full steam Thursday — even as the economy shows signs of recovery thanks to the easing of pandemic restrictions. Any talk of a stimulus taper could mean higher borrowing costs for companies — the last thing the ECB wants right now. “Even if economic developments would in our view clearly justify at least having a first tapering discussion, the sheer mention of such a discussion could push up bond yields further and consequently undermine the economic recovery before it has actually started," said Carsten Brzeski, global head of macro at ING bank.

From left to right, Zhu Min, deputy managing director of the International Monetary Fund (IMF), Haruhiko Kuroda, governor of the Bank of Japan (BOJ), Christine Lagarde, president of the European Central Bank (ECB), Steven Mnuchin, U.S. Treasury secretary, Olaf Scholz, Germany's finance minister, and Kristalina Georgieva, managing director of the International Monetary Fund (IMF), attend a panel session on the closing day of the World Economic Forum (WEF) in Davos, Switzerland, on Friday, Jan. 24, 2020.

Bitcoin prices roared back on Monday as the cryptocurrency market attempted to recover from a broad sell-off last week.

The ECB is keeping its policy unchanged while market players look for clues on when its massive monetary stimulus might start to be wound down.

The European Central Bank is leaving its key stimulus programs unchanged with almost 900 billion euros of support still in the pipeline as the economy lags the U.S. and China in a drawn-out struggle with the COVID-19 pandemic.

Jesse Powell, CEO of bitcoin exchange Kraken, said there "could be some crackdown" on cryptocurrencies.

Despite a difficult struggle against the Covid-19 pandemic, the EU will hit its economic stride later this year, Lagarde told CNBC on Friday.

The rise in the 10-year yield in recent weeks “caught my attention," Powell acknowledged earlier this month. AdIn anticipation of faster growth and inflation, investors have priced in at least three Fed rate hikes by 2023 — a much earlier lift-off than the Fed itself has forecast. Seeking to reassure investors, Fed officials have said they regard the rise in the 10-year yield as a positive sign, evidence that the financial markets expect the economy to steadily strengthen. As a consequence, Fed officials will likely boost their projections for economic growth for this year and for 2022, lower their estimates for unemployment and raise their expectations for inflation. Fed officials may project economic growth this year of as much as 5%, economists say, up from their December estimate of 4.2%.

However, the central bank's bond purchases in the first quarter have been lower than usual and the Frankfurt-based institution said it expected to ramp up its purchases going forward. Bond yields in the euro zone have been rising since February, following their United States counterparts higher after President Joe Biden announced a massive fiscal stimulus plan. Christine Lagarde ECB PresidentHowever, markets were reassured by the ECB's statement Thursday, and bond yields fell in the euro zone. Bond yields move inversely to prices. Christine Lagarde ECB PresidentThe central bank also decided to keep interest rates unchanged.

The rise in longer-term borrowing rates is regarded as a spillover from the U.S., where the economic recovery is expected to be faster. By contrast, the eurozone economy is not expected to recover until mid-2022, held back by a slow vaccine rollout and lower levels of government relief spending compared with the U.S. ECB President Christine Lagarde told a news conference that the rise in market borrowing rates, “if left unchecked, could translate into a premature tightening of financial conditions for all sectors of the economy. AdThe bond purchases have the effect of pushing down bond yields, which are used as benchmarks for borrowing across the region. Lagarde didn't specify an amount for the accelerated bond purchases.

Big Tech stocks came under pressure with Apple, Amazon and Microsoft all dropping at least 2%. The Dow Jones Industrial Average reversed a 200-point loss to close 27.37 points higher, or 0.1%, at 31,521.69. These same tech stocks also thrived during the pandemic, so some investors may be taking profits and rotating into names that will do well in a recovery. The 10-year Treasury yield rose again on Monday to around 1.35% after jumping 14 basis points last week to its highest level since February 2020. So far this month, the benchmark rate has moved up 27 basis points.

[The stream is slated to start at 11:15 ET. Please refresh the page if you do not see a player above at that time.] The Covid-19 pandemic has sent the global economy into one of its worst recessions ever, and though a rollout of vaccines has brightened the outlook for 2021, it's not yet clear when a full recovery will take place. With that in mind, CNBC's Geoff Cutmore speaks with a panel of top global leaders — European Central Bank President Christine Lagarde, Goldman Sachs CEO David Solomon, German Economic Affairs and Energy Minister Peter Altmaier, French Finance Minister Bruno Le Maire and Volkswagen CEO Herbert Diess — about how to drive a return to pre-pandemic levels of growth. Subscribe to CNBC on YouTube.

President of the European Central Bank (ECB) Christine Lagarde. FRANCISCO SECO | AFP | Getty ImagesLONDON — The coronavirus pandemic is still posing "serious risks" to the euro zone economy, European Central Bank President Christine Lagarde said Thursday as lockdowns are tightened across the region. Nonetheless, the pandemic continues to pose serious risks to public health and to the euro area and global economies," she said during a press conference. Stands ready to actAmid the economic uncertainty, the ECB said it's ready to update its policies whenever necessary. Speaking at an event, earlier this month, central bank President Christine Lagarde said: "I think our last projections in December are still very clearly plausible."

FRANKFURT – With more than a trillion euros in stimulus still in the pipeline to the economy, the European Central Bank left its key bond-purchase program unchanged Thursday as the 19-country eurozone endures a winter economic slowdown due to the pandemic. ECB President Christine Lagarde told a news conference that the economy likely contracted in the last three months of 2020 and the outlook going forward faces risks. The economy is being propped up by massive support from the ECB, national governments, and the EU. The European Union’s executive commission forecasts that the eurozone economy shrank 7.8% last year. Those are zero for short term loans from the ECB to banks, and minus 0.5% on deposits left overnight at the ECB by banks.

LONDON — The European Central Bank on Thursday expanded its massive monetary stimulus program by another 500 billion euros ($605 billion), as a second wave of lockdown measures weigh on the euro area's economic recovery. Markets had largely expected the central bank to add to its bond buying, having vowed back in October to "recalibrate its instruments" as a resurgence in coronavirus cases across the continent led to further national shutdowns. The ECB held interest rates on its main refinancing operations, marginal lending facility and deposit facility at 0.00%, 0.25% and -0.50%, respectively. The central bank launched its Pandemic Emergency Purchase Programme (PEPP) earlier this year in a bid to shore up the bloc's economy in the wake of the pandemic. "Unexciting if not almost boring — as in 'the ECB watches the Eurozone economy's back whatever betide' — is exactly how the ECB wants to be seen."

The 25-member governing council decided Thursday to increase its bond purchase stimulus by 500 billion euros, to 1.85 trillion euros ($2.2 trillion). The bond purchases help keep credit affordable and available across the economy for consumers, businesses and governments. That is critically important to help businesses survive until the pandemic eases, and to support governments that are borrowing heavily to pay for aid to businesses and workers. Governments have also marshalled support at the EU level by agreeing to borrow together to create a 750 billion-euro recovery fund. The deposit rate on money banks leave overnight at the ECB is minus 0.5% rate, a penalty that pushes them to lend the money instead.

The bank could add a half-trillion euros or more to its existing bond purchases. That means the central bank will vacuum up much of the new debt being issued by hard-pressed governments, lowering the risk of a new eurozone debt crisis. She subsequently pointed to the current, 1.35 trillion ($1.58 trillion) pandemic emergency bond purchase program as a likely place for action. Yet its borrowing costs remain low and markets are calm despite the pandemic, and analysts say ECB support plays a crucial role in that. Without ECB support, a debt crisis could loom.

FRANKFURT – Three of the globe's top central bankers said their economies continue to need help despite progress toward a COVID-19 vaccine, with U.S. Federal Reserve Chair Jerome Powell saying that the U.S. Congress “may need to do more” to cushion the blow from the pandemic. All three central banks have deployed large-scale stimulus such as interest rate cuts and bond purchases that aim to keep borrowing costs affordable for businesses. A multi-trillion-dollar stimulus, enacted in the spring, had helped sustain jobless Americans and ailing businesses but has since expired. “We’re recovering to a different economy,” he said, and there will be a substantial number of workers who will need support as the economy is changed by the pandemic. The Fed is buying $120 billion a month in bonds — $80 billion in Treasurys and $40 billion in mortgage bonds — to try to keep long-term borrowing costs low.

Federal Reserve Chairman Jerome Powell said Thursday he worries about women, children and business owners who face long-term consequences from the coronavirus pandemic. "It's women who are not by choice out of the labor market," Powell continued. Nonfarm payroll growth for October was better than Wall Street expectations and some 12 million workers have returned to their jobs following 22 million layoffs in March and April. Powell cautioned that displaced workers are going to need extended support as the U.S. economy recovers in ways that will be different from its former self. "We're not going back to the same economy," Powell said.

FRANKFURT – European Central Bank head Christine Lagarde warned Wednesday that the economy could face a “bumpy,” “stop-start” recovery despite good news about vaccine development. The European Commission has said it plans to secure up to 300 million doses of the experimental vaccine developed by Pfizer and BioNTech. Lagarde said policymakers must ensure that the exceptional downturn remains a one-off blow to the economy and does not turn into a recession that feeds on itself. Analysts have been predicting more stimulus as a renewed increase in virus infections and partial lockdowns weigh on economic growth. Inflation was at minus 0.3% in October and continues to lag the ECB’s goal of below but close to 2%.

Christine Lagarde, President of the European Central Bank, speaks to the media following a meeting of the ECB governing board. Thomas LohnesLONDON — European Central Bank President Christine Lagarde cautioned Wednesday against an immediate economic impact from a Covid-19 vaccine, while also giving more details about what the central bank is likely to do next. "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," Lagarde said at the ECB Forum on Central Banking. "So the recovery may not be linear, but rather unsteady, stop-start and contingent on the pace of vaccine rollout," she said. Pfizer and BioNTech announced Monday that their Covid-19 vaccine was more than 90% effective in preventing the infectious disease, which has boosted optimism that the pandemic could come to an end sooner rather than later.

New Delhi reported 8,593 newly confirmed cases Thursday, up from 7,830 cases a day earlier as people crowd shopping areas ahead of Saturday’s observances of Diwali — an important Hindu festival of lights. The Delhi government projects that new coronavirus cases will be nearly 12,000 daily by the end of November. India’s infections overall continue came in at 47,905 new cases, a rise from 44,281 cases reported Wednesday. The daily death toll represented a more than 55% jump from Minnesota’s previous record of 36 deaths, reported on Friday. State health officials reported 1,039 new coronavirus cases on Wednesday, and a daily positivity rate of more than 18% for the second consecutive day.

BRUSSELS – The European Union's executive commission on Thursday lowered its growth forecast for the economic rebound from the coronavirus pandemic next year and said the economy wouldn’t reach pre-virus levels until 2023. The regular autumn forecast foresees the economy of the 19 countries that use the euro growing only 4.2% in 2021 instead of the previous estimate of 6.1%. The downgrade comes as governments record increasing numbers of infections, sick people in hospitals and deaths, leading to renewed restrictions on businesses and activity. Third-quarter GDP increased by 12.7% from the previous quarter, the largest increase since statistics started being kept in 1995. The European Central Bank is pumping 1.35 trillion euros ($1.58 trillion) into the economy through regular bond purchases, a step aimed at keeping credit flowing affordably to businesses.

New figures released Friday Oct. 30, 2020, show that the European economy grew by an unexpectedly large 12.7% in the third quarter as companies reopened after severe coronavirus lockdowns. Re-openings there led to strong third-quarter growth of 7.4% that recovered much of the drop from the first part of the year — but didn't dispel fears for the winter months. The European rebound, reflected in figures released Friday by EU statistics agency Eurostat, was the largest increase since statistics started being kept in 1995. It followed an 11.8% contraction in the second quarter in the 19 European Union member countries that use the euro currency. The rebound was led by France, with an enormous 18.2% increase, followed by Spain with 16.7% and Italy with 16.1%.

FRANKFURT – The European Central Bank held off from strengthening its current economic stimulus but its President Christine Lagarde said there was “little doubt” that more action would be coming at its December meeting as surging coronavirus infections and new restrictions on activity threaten Europe’s economy. “We have little doubt... that the circumstances will warrant the recalibration and the implementation of this recalibrated package," Lagarde said. Analysts believe that is one reason the bank could take no action Thursday, since there already more stimulus still in the pipeline. Massive ECB stimulus and new spending by governments has helped ward off turmoil on financial markets and cushion the downturn. Airlines, hotels, restaurants and other businesses big and small have suffered a devastating drop in activity.

European Central Bank (ECB) President Christine Lagarde gestures as she addresses a news conference on the outcome of the meeting of the Governing Council, in Frankfurt, Germany, March 12, 2020. The bank decided to keep its rates and wider monetary policy unchanged, but suggested that additional policy action in the euro zone could come as soon as December. The latest statement from the ECB suggests that policymakers will adjust their monetary policy based on those upcoming forecasts. Speaking at a press conference following the announcement, ECB President Lagarde said the euro area economic rebound was "losing momentum more rapidly than expected." We have done it for the first wave; we will do it again for the second wave," Lagarde said.

FRANKFURT – The head of the European Central Bank says the economic recovery from the coronavirus pandemic “risks losing momentum” due to a second wave of infections and that more stimulus could be added if necessary. “Since the rebound we saw over the summer, the recovery has been uneven, uncertain and incomplete and now risks losing momentum,” she said, adding that “the options in our toolbox have not been exhausted. It's rate for short-term lending to banks is zero; for deposits left overnight from banks, the rate is negative 0.5 percent. The negative rate means banks pay a penalty for leaving money at the central bank instead of lending it to business. The ECB's steps are credited with helping keep the coronavirus outbreak from turning into a crisis for financial markets.

LONDON — Kristalina Georgieva, the managing director of the International Monetary Fund, told CNBC Thursday that she has "no doubt" the U.S. will implement a new economic stimulus package that will help reduce the current uncertainties for the global economy. The IMF boss said that the impact of a U.S. stimulus package would be much-needed positive whenever it's introduced, adding that if it were implemented earlier it would "provide a boost to certainty and certainty is something we do need in this crisis." Georgieva said the U.S. Federal Reserve's monetary policy, along with the government's fiscal policy, were the "two levers" managing the U.S. economy and that it was "best if they are used together in combination." In March, the Fed lowered interest rates to near-zero and launched a quantitative easing program of $700 billion to support the U.S. economy. However, a second fiscal package looks unlikely before the Nov. 3 election.

LONDON — European Central Bank President Christine Lagarde on Thursday said her organization would be prepared to impose further emergency measures to tackle the economic fallout from the coronavirus crisis, with the region confronting a rapid upsurge of Covid-19 infections. "The many weapons that we have available, ranging from interest rates to forward guidance and asset purchase programs, we stand ready. We have done a lot, and if more is needed because the situation deteriorates, then we will do what is necessary." Europe has recorded more than 7.4 million cases of the coronavirus, according to the World Health Organization, with 251,478 related deaths, and hospitalizations rising at an alarming rate. WHO's regional director for Europe, Dr. Hans Kluge said on Thursday that the "exponential" increases in daily cases and matching percentage increases in daily deaths across the region raised "great concern."

The central bank issued a comprehensive report outlining the reasons why it might need to take the step. It said no decision has been made, and that any digital euro would complement cash, not replace it. We should be prepared to issue a digital euro, should the need arise.”A digital euro would be different from current cashless payment systems run by the private sector because it would be official central bank money - trustable, risk-free and likely less expensive to use. A central bank digital currency could also be used offline, for instance, to transfer small amounts between individuals using digital wallets on their smartphones and a Bluetooth connection. China’s central bank is already testing an official digital currency, while the central bank of Sweden says it has initiated a pilot project.

Excluding volatile food and fuel prices, the inflation rate was 0.2% in September, down from 0.4% in August. The so-called core inflation figure is often considered the better measure of price movements in the economy as a whole. Rosie Colthorpe, European economist at Oxford Economics, pointed to temporary factors lowering inflation, such as a cut in value-added tax in Germany as part of that country's crisis stimulus. Economists say the pandemic is contributing to low inflation as merchants keep prices down in hopes of attracting customers amid restrictions on travel and activity. The ECB, based in Frankfurt, Germany, is the chief monetary authority for the EU member countries that use the euro.

FRANKFURT – The head of the European Central Bank says that the economy is rebounding but that the recovery remains uncertain, incomplete and dependent on containing the virus outbreak. But she added that “the strength of the recovery remains very uncertain, as well as uneven and incomplete.”“It continues to be highly dependent on the future evolution of the pandemic and the success of containment policies,” she said. The ECB is pumping 1.35 trillion euros ($1.6 trillion) in newly printed money into the economy through ongoing bond purchases through the end of next year. That is a large-scaled monetary stimulus aimed at preventing the pandemic from causing turmoil in financial markets, and at keeping borrowing costs low for companies to help support growth. The European Central Bank is the chief monetary authority for the 19 countries that use the euro, analogous to the Federal Reserve in the U.S. or the Bank of England in Britain.

FRANKFURT The European Central Bank left its key stimulus settings unchanged with almost a trillion euros (dollars) in stimulus still in the pipeline to bolster the eurozones rebound from the severe coronavirus shutdowns. The pause may only be a prelude to even more stimulus later this year as the ECB and global counterparts such as the US Federal Reserve make clear their determination to do maintain their massive support to limit the damage from the virus outbreak. The banks governing council made the decision at a meeting Thursday. Markets were waiting to hear ECB head Christine Lagardes outlook on possible threats to the economic rebound from a stronger euro, which can hurt exporters, and from weak inflation, which indicates weak demand. Many analyst think that the ECB will add to its pandemic emergency bond purchase stimulus at its December meeting, when it will have new inflation and growth forecasts.

A 0.2% annual drop in prices in August in the 19 countries that use the euro underlined that demand from unsettled consumers across the economy remains weak despite the reopening of many businesses. The economy plunged by a dizzying 11.8% in the second quarter from the first quarter. That means it doesnt represent outright deflation, a dreaded downward price spiral that can become a long-term trap for an economy. He expects a partial rebound in prices in the near term followed by a period of subdued inflation rather than a sustained fall in prices. He predicted the bank would raise the amount of pandemic stimulus purchases this year.

FRANKFURT The European Central Bank has left its monetary stimulus programs unchanged ahead of a key meeting of EU leaders on a recovery plan meant to help the economy bounce back from the coronavirus shutdowns. The ECB held off providing new measures Thursday after unleashing in recent weeks massive doses of monetary stimulus that have helped keep borrowing costs for companies and consumers at roughly pre-pandemic levels. There is also interest in whether the ECB could increase the 1.35 trillion euros figure for the pandemic emergency purchases if needed. Average borrowing costs for big eurozone governments rose during March but have since returned to pre-pandemic levels. The ECB left its other stimulus settings unchanged on Thursday.