Lagarde assures that the ECB has different options to react to the energy shock

The European Central Bank has various options to respond to the energy shock linked to the war in Iran, measures that will be adapted based on the scale and duration of the conflict, the institution's president assured today. Christine Lagarde stated that the ECB will not be 'paralysed by hesitation' and has a 'graduated range of response options' in terms of monetary policy, though she did not specify what these are. The institution will not act until it has sufficient information on the magnitude and persistence of the shock, she added. Lagarde reiterated the unconditional commitment to keeping inflation at 2%, noting that while monetary policy cannot lower energy prices, the ECB will monitor the risk of current oil and gas price increases causing widespread inflation.