Fed tightening affected Eurozone as much as US - Lagarde

EPA-EFE/JEON HEON-KYUN

European Central Bank President Christine Lagarde said on Friday that monetary policy tightening by the United States Federal Reserve affected industrial production in the euro area as much as it did in the US.

Speaking in Thailand at a central bank conference, she noted that the short-term outlook is uncertain after a series of shocks hit the global economy and that it remains to be seen how those shocks affect supply and demand in the medium term.

She called for fiscal and monetary policies to "act in concert," adding that fiscal policy that stimulates demand might force central banks to tighten monetary policy more than they normally would.

Baha Breaking News (BBN) / MS