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The president of the ECB (European Central Bank), Christine Lagarde, stated that long-term inflation expectations remain, in general, well anchored and broadly aligned with the 2% target, despite the worsening of the war in the Middle East.
In comments this Friday (22), Lagarde said that the energy crisis associated with the geopolitical scenario has put pressure on inflation and negatively affected economic activity.
"Even if the crisis were resolved now - and we've heard a lot of rumors here and there about that - there would be lagged effects that would continue over time," he warned.
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The president also added that price levels tend to be higher at the end of the conflict. Lagarde reiterated that the ECB will take the necessary measures to ensure stability.
Source: CNN
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