Lagarde opening statement: The economy remained weak in the first quarter

• Production remains subdued, especially in energy-intensive industries
• Expects to pick up in coming quarters
• Gov’ts should continue to roll-back support
• Tightness in labor market is gradually declining
• Highlights falling food and energy price inflation, along with goods
• Services price inflation remained high in March at 4%
• More-recent indicators point to further moderation in wage growth
• Inflation expected to decline to target next year
• Risks to economic growth remain tilted to the downside
• Growth could be higher if inflation comes down more than expected
• Inflation could turn out higher if wages climb or profit margins remain elevated
• If we achieve further confidence in outlook, it would be appropriate to lower rates
• We are not pre-committing to a particular rate path

This article was written by Adam Button at www.forexlive.com.