European Central Bank chief: No data suggests stagflation


NICOSIA, Cyprus (AP) — There is currently no data to suggest that Europe will fall into stagflation, a combination of high inflation, little or no economic growth and high unemployment, the president of Cyprus said on Wednesday. the European Central Bank.

Christine Lagarde told a Bank of Cyprus conference in the Cypriot capital that at present “we don’t have the two elements that characterize” stagflation – a prolonged recession and inflation that continues to rise. ‘to augment.

Lagarde said that while inflation will “undoubtedly” rise this year due to high fuel and food prices, the bank does not expect it to continue to rise and eventually fall to meet “our target. of 2%”.

The head of the European Central Bank said conditions remained “fairly fluid” due to the disruption caused by Russia’s invasion of Ukraine and the bank was constantly reviewing different scenarios about where things might go.

Lagarde said she was sure the bank would sift through the data ahead of its June board meeting to reassess the situation.

“I’m sure we’ll do it before June because the situation is actually fluid,” Lagarde said. “We have to be extremely careful, extremely careful. We have to watch the data.”

Speaking earlier following discussions with Cypriot President Nicos Anastasiades, Lagarde said that in light of the war in Ukraine, the bank was trying to ensure price and financial stability and that sanctions against the Russia were strictly enforced.

“We are very keen that the sanctions that have been decided at European level are also observed and implemented with full integrity and rigor and that is what must indeed take place,” Lagarde said.


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