christine lagarde : imfc statement statement by ms christine lagarde, president of the european central bank, at the forty - third meeting of the international monetary and financial committee, virtual imf spring meetings, washington dc, 8 april 2021. * * * since the previous imfc meeting in october 2020, global prospects have improved thanks to the progress made in vaccination campaigns and the forceful policy support provided to our economies. however, this brighter outlook remains subject to considerable uncertainty, also regarding the path of the pandemic and the rollout of vaccinations. we must therefore continue to stand together to address this severe global challenge. in this environment, it is crucial to refrain from withdrawing policy support prematurely, either on the monetary or fiscal side. at the same time, it is essential to push ahead with well - tailored structural measures that will facilitate the reallocation of resources over time to more viable sectors, minimise permanent scarring effects on our economies and support potential growth in the medium term. euro area developments and outlook the pandemic and related containment measures will continue to adversely affect euro area economic activity in the short term. beyond the short term, activity should pick up thanks to the lifting of confinement measures once there is broader immunity, exceptional monetary policy measures, continued fiscal policy support and a rebound in foreign demand. overall, the risks surrounding the euro area growth outlook have become more balanced, although downside risks associated with the pandemic remain in the near term. improving global demand, also spurred by sizeable us fiscal stimulus, and the progress in vaccination campaigns constitute upside risks. inflation increased sharply at the beginning of this year compared with the end of last year. the upswing reflected several factors, most of which were temporary and statistical. headline inflation is likely to increase further in the coming months, but some volatility is expected throughout the year, and the temporary factors are expected to fade out of annual inflation rates early next year. underlying price pressures are likely to increase somewhat this year due to current supply constraints and the recovery in domestic demand, although pressures will remain subdued overall, also reflecting low wage pressures and the past appreciation of the euro. once the impact of the pandemic fades, the unwinding of the high level of slack, supported by accommodative fiscal and monetary policies, will contribute to a gradual increase in inflation over the medium term. monetary policy in december the ecb ’ s governing council decided to

variable remuneration below a conservative threshold. in the medium term, after the covid - 19 crisis, it will be important to look holistically at the capital framework with a view to simplifying it and removing potential obstacles to its effectiveness. the non - bank financial sector needs to be made more resilient through regulatory reforms, given the 2 / 3 bis central bankers'speeches growing role of non - bank financial institutions in financing the real economy and their interlinkages with the rest of the financial system. international crisis response as national authorities continue to take the necessary steps to fight the pandemic, global cooperation and resource and knowledge - sharing across nations remain vital. addressing international trade disruptions, preserving trade openness and ensuring universal access to vaccines and treatments will be of paramount importance for a durable global economic recovery. global cooperation has been instrumental in our response to the pandemic so far. on the central banking side, this includes the coordinated action by major central banks, including the ecb, to enhance the provision of us dollar liquidity at the onset of the crisis. in addition, the ecb ’ s agreements on bilateral euro swap and repo line arrangements with some eu and eu neighbouring countries ’ central banks to prevent euro liquidity shortages from morphing into financial stability risks and to support the smooth transmission of monetary policy. support to the most vulnerable countries, including through the g20 debt service suspension initiative and the establishment of the common framework for debt treatments, has also shown how the international community has stood together firmly to address the pandemic and its consequences. further international efforts will be needed to counter the effects of the pandemic, to maintain a well - functioning international monetary system and to support a global economy that is fit for the future. the ecb supports the crisis response measures taken by the imf and welcomes the recent progress made towards a general special drawing rights ( sdr ) allocation. it is a strong and important signal of constructive multilateral cooperation helping the global recovery. it should be accompanied by efforts to improve transparency and underpin the exchange of sdrs through a broader set of voluntary trading arrangements. given the high debt levels worldwide, we are also supportive of the imf ’ s comprehensive work agenda on debt issues, which will continue to be a key area of work. the upcoming review of imf surveillance is well timed to support a resilient global economic system during and after the recovery phase. bolstering the recovery to