Christine Lagarde said the European Central Bank stands ready to increase interest rates as early as April if the inflation shock from the Iran war spirals out of control.
“We are prepared, if appropriate, to make changes to our policy at any meeting,” the ECB president told a conference in Frankfurt on Wednesday morning.
But Lagarde stressed that it was currently “too early” to take any decision on interest rates as policymakers still needed to “assess the nature, size and persistence” of an expected surge in inflation as a result of higher energy prices.
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