ECB: Lagarde, 'the recovery accelerates but a tightening now would create risks'

The ECB leaves interest rates steady: the main rate remains at zero, the deposit rate at -0.50% and the marginal loan rate at 0.25%.

The Governing Council expects that also in the next quarter "net purchases under Pepp will continue to be conducted at a significantly higher pace than in the first months of the year". The growth estimates for the Eurozone in 2021 and 2022 have been revised upwards, to + 4.6% and + 4.7%, keeping 2023 at + 2.1%. Inflation will be 1.9% in 2021, 1.5% in 2022 and 1.4% in 2023. According to President Lagarde, the economic recovery will accelerate in the second quarter, the economic recovery will accelerate in the second quarter and inflation is going back up, mainly due to temporary factors. Right now " a squeeze would be premature and would create risks ".