Lagarde: ECB will not allow a repeat of the 2022 inflation shock

The European Central Bank (ECB) will ensure that the war in Iran does not cause the same inflationary pressures in the Eurozone as the Russian invasion of Ukraine, according to President Christine Lagarde.

Lagarde stated that the ECB is in a better financial position and has a greater capacity to absorb shocks compared to 2022.

"We will do whatever is necessary to ensure that inflation remains under control and that the French and Europeans do not suffer the same increases in inflation as we saw in 2022 and 2023," Christine Lagarde emphasized.

Energy markets have raised concerns about a potential rise in inflation, which had stabilized near the ECB's 2% target, potentially leading to interest rate hikes.

Lagarde noted the uncertainty and volatility in the markets, adding that "this makes the situation difficult to manage."

She also mentioned that there is great uncertainty about the decisions to be taken at the scheduled policy meeting on March 18-19.