European Central Bank President Christine Lagarde said on Tuesday that the bank would do “everything necessary” to keep inflation under control as the Middle East war drives up oil prices.
In an interview with France 2 and France Inter, Lagarde said the ECB would act to ensure Europeans do not face inflation spikes like those seen in 2022 and 2023, partly triggered by Russia’s invasion of Ukraine.
She declined to say whether interest rates might rise but acknowledged there was significant uncertainty surrounding developments in the Middle East.
The ECB is due to meet on March 19 to decide on rates, one day after the next US Federal Reserve meeting.
Lagarde said the current situation differs from the last inflation surge, noting that inflation is now under control and economic growth in eurozone countries remains relatively resilient.
However, she warned that the level of uncertainty and market volatility is “astonishing” and greater than in 2022.
Oil prices briefly approached $120 a barrel on Monday, rising nearly 30%, before easing to about $87.80 in late trading on Tuesday. Russia’s 2022 invasion of Ukraine had previously pushed Brent crude close to its 2008 record, reaching $139.13 a barrel.
via Euronews
