FRANKFURT, Feb. 6 (Xinhua) -- European Central Bank (ECB) President Christine Lagarde said Thursday that economic growth in the euro area has shown signs of stabilization, but uncertainties surrounding the global economic environment remain elevated.

Meanwhile, the euro area domestic economy remains relatively resilient but global factors weigh on euro area growth, Lagarde told the European Parliament's Committee on Economic and Monetary Affairs in Brussels.

There are tentative signs of stabilization and "slightly more optimistic" results in forward-looking indicators, as shown by the trend in the Purchasing Managers' Index on manufacturing business expectations, according to Lagarde.

However, uncertainties surrounding the global economic environment remain elevated, she noted. While those related to trade tensions between the United States and China are receding, "other risks, however, are still lingering," Lagarde said.

In January's policy meeting, the ECB decided to launch a review of its monetary policy strategy. The process is expected to be concluded by the end of 2020.

Lagarde said Thursday that the world economy has undergone profound changes since the ECB's last strategy review in 2003, and that the low interest rate and low inflation environment has significantly reduced the scope for the ECB and other central banks worldwide to ease monetary policy in the face of an economic downturn.

Since the ECB cut its deposit rate and announced a new bond-purchase program in September 2019, both Mario Draghi, Lagarde's predecessor, and Lagarde herself acknowledged on various occasions that the ECB has been closely monitoring the potential side effects of its stimulus measures.

Lagarde said Thursday that while low interest rates do bring benefits for the economy, they appear to have encouraged more borrowing by highly leveraged firms and greater risk-taking by non-banks.

Property markets in a number of euro area countries have seen persistently rising prices, although the low interest rate environment is only one among many factors influencing the choice to borrow for house purchase, Lagarde added.

She suggested authorities continue to use targeted macro-prudential measures to address risks against financial stability. Enditem

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