While delivering a key note address at the European Banking Congress, in Frankfurt, on Friday, the new European Central Bank (ECB) President Lagarde said: “We face a global environment that is marked by uncertainty”.

Two main challenges in the global economy today, the first relates to the changing nature of world trade.

There are also changes of a more structural nature.

We have a common interest in maintaining sufficient levels of public investment.

Europe needs to innovate and invest to respond to these challenges.

Monetary policy could achieve its goal faster and with fewer side effects if other policies were supporting growth alongside it.

High rates of trade growth that we are used to seeing are no longer an absolute certainty.

Second challenge relates to domestic growth in advanced economies.

Monetary policy will continue to support the economy and respond to future risks in line with our price stability mandate. We will continuously monitor side effects of our policies.

Source : FXstreet