The President of the European Central Bank, Christine Lagarde has made her opinion known concerning the ‘looming recession’.

Lagarde acknowledged the eurozone must be attentive to recession risks. She however noted that recession was not their baseline scenario.

The president made this acknowledgment while testifying before the European Parliament.

During her testimony, Lagarde said that she will not be revealing any features of the new bond-buying tool and added that they will look at the balance sheet size issue at a later stage.

She also discussed further that risks to financial stability have perceptibly increased since the beginning of this year. Lagarde said that they see an increased risk of a correction of real estate prices. Commenting on the labor market conditions, Lagarde noted that it was likely for wage increases to accelerate.

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