European Central Bank President Lagarde: The impact of inflation on the exchange rate is closely monitored.

At the just-concluded press conference of the European Central Bank, European Central Bank President Lagarde said that the euro area is still seriously affected by the epidemic and contracted in the fourth quarter of 2020, and the impact may continue until the first quarter of 2021.

Further negative developments cannot be ruled out, and it is likely that the inflation rate will remain very low.

Adequate monetary stimulus is crucial, and the ECB is closely monitoring the impact of inflation on the exchange rate and adjusting all instruments as needed, which will guarantee flexibility in bond purchase to ensure a smooth transition.