European Central Bank President Christine Lagarde said the euro area economy is likely to contract as much as 12 percent in 2020 as member countries struggle to emerge from the coronavirus pandemic.
On a live webinar, Lagarde said on Wednesday, the actual economic outcome would come between the ECB's "medium" and "severe" scenarios. The mild scenario is outdated.
The governing council of the ECB meets next on June 4. The bank will update its outlook for both growth and inflation next week.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.