"Economic news has become 'much more positive' and the economy is likely to experience only a 'small contraction' in the eurozone," ECB President Christine Lagarde said at the Davos International Economic Forum. France is sure that 2023 "won't be brilliant but it will still be much better than feared". Furthermore, she underlines, "the labor market has never been as lively as it is now" and this happens "in a homogeneous way throughout the euro area".
However, the president of the ECB remains firm on inflation: "In the euro area it is too high and we are determined to bring it back to 2% in a timely manner with all the necessary measures".
Inflation remains the "primary objective of the ECB".
The ECB will stay the course on rates: it will keep "the bar straight until we have entered restrictive territory long enough to quickly bring inflation back to 2%".