5/11/2022, 10:13 AM (Source: TeleTrader)
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Lagarde: Commitment, flexibility key to combating inflation

European Central Bank (ECB) President Christine Lagarde admitted on Wednesday that the crisis that has emerged amid the COVID-19 pandemic and Russia's military intervention in Ukraine delivered a much greater shock to the euro area than to other major economies" because it unveiled "the underlying weaknesses in the institutional architecture of the union."

Speaking at the ceremony marking the 30th anniversary of the Bank of Slovenia, Lagarde also stressed that the ECB's "commitment and flexibility" allowed Europe "to react effectively." She went on to describe those two factors as the keys to fighting the rising inflation in the Eurozone. Lagarde then expressed her confidence inflation could be "on target over the medium term."

"With signs that inflation expectations were starting to de-anchor, the ECB had to show that it was as committed to fighting deflationary forces as it was – and is – committed to fighting inflationary ones," she said. "The road traveled has been a difficult one, and the challenges we still face are many. But I have every confidence that we will overcome them."

Baha Breaking News (BBN) / JR