April 22 (Reuters) - The European Central Bank left policy unchanged as expected on Thursday and will keep copious stimulus flowing. Following are highlights of ECB President Christine Lagarde’s comments at a post-policy meeting press conference. CLOUDED OUTLOOK While the recovery in global demand and the sizable fiscal stimulus are supporting global and euro area activity, the near-term economic outlook remains clouded by uncertainty about the resurgence of the pandemic and the rollout of vaccination campaigns. FINANCING CONDITION RISKS Euro area financing conditions have remained broadly stable recently after the increase in market interest rates earlier in the year. But risks to wider financing conditions remain. Economic activity may have contracted again in the first quarter of this year, but (data) point to a resumption of growth in the second quarter. TEMPORARY FACTORS Inflation has picked up over recent months on account of some idiosyncratic and temporary factors and an increase in energy price inflation. SUBDUED UNDERLYING PRESSURE At the same time, underlying price pressures remain subdued in the context of significant economic slack and still weak demand. MANUFACTURING RECOVERY Surveys indicate that the manufacturing sector continues to recover, supported by solid global demand. At the same time, restrictions on mobility and social interaction still limit activity in the services sector, although there are signs of a bottoming-out. FIRM REBOUND Progress with the vaccination campaigns and the envisaged gradual relaxation of containment measures underpin the expectation of a firm rebound in economic activity in the course of 2021. TEMPORARY FACTORS Inflation has picked up over recent months on account of some idiosyncratic and temporary factors and an increase in energy price inflation.
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