ECB President Lagarde Weighs Response to Iran Conflict

European Central Bank (ECB) President Christine Lagarde stated that the ECB is carefully considering its response to the Iran conflict and its impact on inflation, according to Spanish national television. Lagarde emphasized the need to avoid acting too early or too late. In an interview, she highlighted the 'great uncertainty' faced by policymakers and the necessity for 'more data' to understand the conflict's effects. When asked whether the ECB would raise interest rates next month, as many expect, she declined to comment. Lagarde noted the challenge of balancing the risks of acting too quickly or too slowly, stressing the importance of finding the right path to guide the economy towards the ECB's 2% medium-term inflation target.