European Central Bank President Christine Lagarde said on Thursday that euro area economic activity is set to remain sluggish in the near term and the unemployment could rise further in the face of slower job creation, as policymakers decided to continue hiking interest rates in a steady manner. Earlier on Thursday, the ECB Governing Council raised its key interest rates by 50 basis points, in line with expectations, and signaled that policymakers plan to repeat the move in March, when they will evaluate the future path of policy rates.
Citing the modest 0.1 percent GDP growth in the euro area in the fourth quarter of 2022, Lagarde said, "While above the December Eurosystem staff projections, this outcome means that economic activity has slowed markedly since mid-2022 and we expect it to stay weak in the near term."
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.