Economic Risks 'less Pronounced' As Trade Tensions Ease: Lagarde

European Central Bank chief Christine Lagarde on Thursday said risks to the eurozone economy had become "less pronounced" in the wake of a US-China trade truce even as President Donald Trump reignited a trade spat with Europe

Frankfurt am Main, (UrduPoint / Pakistan Point News - 23rd Jan, 2020 ):European Central Bank chief Christine Lagarde on Thursday said risks to the eurozone economy had become "less pronounced" in the wake of a US-China trade truce even as President Donald Trump reignited a trade spat with Europe.

Speaking to reporters after chairing her second meeting as president, Lagarde said the bank's ultra-easy money policies remained necessary in the face of stubbornly low inflation and slow growth.

But she hinted that the ECB was more optimistic about the euro area outlook following the partial US-China trade deal struck after two years of tensions that roiled the global economy.

"Risks related to geopolitical factors, rising protectionism and vulnerabilities in emerging markets remain tilted to the downside, but have become less pronounced as some of the uncertainty surrounding international trade is receding," Lagarde told reporters in Frankfurt.

She said the US-China deal had reduced uncertainty but would also have knock-on effects on other countries, creating winners and losers.

The ECB would now "very carefully" study the impact of the deal, she said.