ECB President Highlights Risks to Eurozone Growth

European Central Bank (ECB) President Christine Lagarde expressed concerns on Thursday about the potential negative impact of increased global trade friction on the Eurozone's economic growth. Lagarde emphasized that such developments could also introduce greater uncertainty into the bank's inflation forecasts.

Geopolitical Tensions and Energy Prices

Furthermore, Lagarde pointed out that ongoing geopolitical tensions, particularly the conflicts in Ukraine and the Middle East, have the potential to drive energy prices higher, adding another layer of complexity to the economic landscape.

Inflation Outlook

Despite these challenges, the ECB head remains cautiously optimistic, noting that inflation is expected to experience fluctuations in the short term before stabilizing around the bank's 2% target in the medium term.