• Eurozone economy to stagnate in the next few quarters
• Risks to inflation have become more balanced
• Fiscal impasse is starting to turn into a headache

The fear for the euro area now is that as the economy skirts around the risk of a recession, a second-round effect of inflation pressures would basically put them in a rather dire spot. Stagflation, anyone? Lagarde is trying to sound optimistic but surely she can’t say with unequivocal certainty that the ECB has done enough.

This article was written by Justin Low at www.forexlive.com.