Lagarde stated that the European Central Bank does not have a preset policy stance amid tensions in the Middle East

LootboxPhobia · 2026-03-05T19:09:47+00:00

European Central Bank President Lagarde stated that due to Middle East geopolitical tensions, the European Central Bank will maintain flexible monetary policy and make decisions based on data rather than a fixed path. She emphasized that the impact of global developments on the Eurozone will be monitored.

LootboxPhobia

2026-03-05 19:09:47

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Investing.com – European Central Bank President Christine Lagarde said Thursday that the ECB will maintain a flexible approach to monetary policy as geopolitical tensions in the Middle East continue to develop.

Lagarde emphasized during a speech at Johns Hopkins University in Bologna, Italy, that the ECB will make decisions “at each meeting” rather than following a predetermined path.

“We will decide on monetary policy based on data, meeting by meeting. We do not have a preset stance,” Lagarde said during a Q&A session.

She added that the ECB will “make decisions based on all the data we can collect, analyze, and review with sufficient confidence.”

Lagarde pointed out that combining a data-driven approach with no preset monetary policy rhythm “puts the ECB and the euro system in a favorable position to carefully monitor and attempt to understand the current shocks’ potential future consequences.”

The conflict between the U.S. and Israel has expanded to include other Gulf countries, raising concerns about inflation and eurozone growth due to rising energy costs and supply chain disruptions.

“We will monitor global developments very carefully and assess the impact of current shocks on the future,” Lagarde said.

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