In a press conference this Friday (25), the president of the European Central Bank (ECB), Christine Lagarde, said that the institution’s board has been discussing the possibility of rising inflation due to invasion and war between Russia and Ukraine.
“Regarding inflation, we estimate that the price of the energy sector should increase in the coming weeks and months, which will lead to an increase in inflation. We will likely have some changes in consumption that will end up stunting growth,” he said.
She pointed out, however, that any conclusive forecast of inflation at this point is premature. “We are updating our progression for inflation growth at the board meeting. Any number that appears now is still premature, because it is an evolving situation, the numbers will still be defined and presented correctly.”
Lagarde defined that the ECB will follow some principles it followed during the Covid-19 crisis: the search for financial and price stability, non-dependence on debt and acting with speed in cases of emergency.
She stressed that optionality, which she defined as “changing according to volatile circumstances”, and flexibility, will be essential capabilities to face volatile moments of crisis.
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Source: CNN Brasil
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