ECB's Lagarde Advocates Caution on Monetary Policy Amid Middle East Conflict

European Central Bank (ECB) President Christine Lagarde maintained a cautious stance on monetary policy decisions, emphasizing the need for additional information amid rising oil prices and inflation concerns stemming from the Middle East conflict.

Speaking at the 75th anniversary of the Association of German Banks on the 20th (local time), Lagarde stated that the current uncertainties caused by the Middle East conflict make it difficult to predict the duration and scope of its impact on the economy.

She noted that outcomes could vary depending on factors such as war, ceasefire, and peace talks, reiterating that more information is needed before drawing firm conclusions on monetary policy. Lagarde said on the day that more information needs to be gathered before firm conclusions can be drawn on monetary policy.