To watch the press conference CLICK HERE. The EURUSD is trading at 1.1379 at the start of the press conference. Lagarde's prepared comments: Recent data points to some improvement in economic activity.Activity and services partly recovered.Digital services robust, partly on AI.Firms, households expected labor market to remain weaker than before conflict. Indicators suggest economic activity remain modestWill said monetary policy to ensure inflation returns to target in medium-term.Inflation outlook and risks will be key to setting rates.Hello for energy prices while volatile are close to June projections, but uncertainty remains highInflation declined to 2.8% in JuneEnergy shock feeding into higher prices. Underlying inflation contained, full effect of energy shock has yet to play out Wage expectations continue to indicate moderate wage growth.Most measures of long-term inflation expectations stand around 2%.Energy inflation likely to keep inflation well above target into first half of 2027, but expect inflation will then decline as energy prices are expected to fall.Conflict remains a major source of uncertainty.Risks to growth tilted to the downside.Recent weeks have brought renewed setbacks.Energy prices could go up further and for longer than expectations.Higher energy prices will weigh on real incomes. Other geopolitical issues remain including Russia's conflict with Ukraine threatened growth Risks to inflation are to the upside. Energy shocks could intensify, potentially increasing broader inflationary moves and secondary effects.Extreme weather events, climate crisis could drive up food prices by more than expected. In contrast inflation can turn lower if the conflict is solved sustainablyOverall financial conditions have become slightly tighter since the last meetingQ&AHave had some relatively benign developments since June decision This article was written by Greg Michalowski at investinglive.com.