ECB’s Lagarde sees no risk of stagflation in the euro zone

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European Central Bank President Christine Lagarde addresses a press conference following the Monetary Governing Council meeting in Frankfurt

BERLIN, March 26 (Archyde.com) – The European Central Bank does not expect the war in Ukraine to lead the euro zone into stagflation, even if inflation continues to accelerate due to higher energy prices, jeopardizing the economic growth, ECB President Christine Lagarde said on Saturday.

“The recent data does not point to a concrete risk of stagflation,” Lagarde said in an interview with Phileleftheros published by the ECB on its website.

Lagarde said that GDP growth in the euro zone might drop to a minimum of 2.3% in a severe scenario due to the war in 2022, however, in all projections, they indicate that inflation will decrease and approach the target. of regarding 2% of the central bank in 2024.

(Reporting by Emma Thomasson. Editing in Spanish by Marion Giraldo)