Lagarde Warns of "Significant Risks": Middle East War Threatens Inflation and Growth

 Christine Lagarde, President of the European Central Bank, warned during an IMF conference that the ongoing war in the Middle East poses a serious threat to global price stability. She explained that rising energy costs would directly impact inflation rates in the short term, noting that future prospects have become blurred, which weakens global economic growth.

Lagarde emphasized that the ECB, set to make its next interest rate decision on April 30, has not committed to a pre-determined path, as actions will depend on the conflict's intensity and duration. These remarks come at a sensitive time, coinciding with reports of Tehran agreeing to lift the Hormuz blockade, while the U.S. naval blockade on Iranian vessels remains in place.