2019.11.2208:23:00UTC+00ECB's Lagarde Says Monetary Policy To Continue Support Eurozone Economy

The European Central Bank's ultra-loose monetary policy is supporting the euro area economy and will continue to do so to ensure inflation returns to its target, the new ECB President Christine Lagarde said Friday.

The ECB's accommodative policy stance has been a key driver of domestic demand during the recovery, and that stance remains in place," Lagarde said in a speech at the Frankfurt European Banking Congress. "As laid out in the ECB's forward guidance, monetary policy will continue to support the economy and respond to future risks in line with our price stability mandate," she added.

The ECB will continuously monitor the side effects of its policies, the ECB Chief said.

"But it is clear that monetary policy could achieve its goal faster and with fewer side effects if other policies were supporting growth alongside it," Lagarde said.

Stressing on the need to strengthen the domestic economy, Lagarde said productivity must be raised to boost business investment.