FRANKFURT, March 16 (Reuters) - The European Central Bank raised its three policy rates by 50 basis points on Thursday, sticking to its inflation fight despite turmoil in financial markets that has raised fears about a global banking crisis.
Following are highlights of ECB President Christine Lagarde's comments at a news conference after the policy meeting.
DOWNSIDE RISKS TO GROWTH
"The outlook for economic growth is tilted to the downside.
"Persistently elevated market tensions could tighten broader credit conditions more strongly than expected and dampen confidence.
"Russia's unjustified war against Ukraine and its people continues to be a significant downside risk to the economy and could again push up the cost of energy and food."
STRONG LABOUR MARKET
"Rising wages and falling energy prices will partly offset the loss of purchasing power that many households are experiencing as a result of high inflation. This, in turn, will support consumer spending. Moreover, the labour market remains strong despite the weakening of economic activity."
ECONOMY SET TO RECOVER
"The economy looks set to recover over the coming quarters. Industrial production should pick up as supply conditions improve further, confidence continues to recover and firms work off large order backlogs."
MONITORING MARKET TENSIONS
"We are monitoring current market tensions closely and stand ready to respond as necessary to preserve price stability and financial stability in the euro area."
