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Lagarde: Abrupt Energy Boycott Would Have Significant Impact

ECB

Q: With respect to an oil and gas embargo, is this a realistic scenario and has it been discussed? How concerned are you by the tightening of financial conditions?

  • A: An abrupt boycott would have a significant impact. Staff monitor this very carefully. Some countries in the euro area would be more affected than others.
  • The Bank Lending Survey indicates that there was a tightening by a number of banks. However, the volume of loans to households is still strong and corporate lending has stabilised. Even if there has been tightening, we are not yet seeing the outcome of it.
  • Respondents to the BLS indicate that they expect further tightening in the coming months.

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