Lagarde: ECB "Very Attentive" To Uncertainty, Will Be "Closely Monitoring"

Lagarde turns to the eurozone growth outlook and the interplay with inflation:

• Downside risks to growth have risen significantly as a result of War.
• Persistent high energy prices coupled with a loss of confidence could weigh on growth. Upside risks to inflation have also intensified, especially in the near term.
• The risks to the medium term outlook include upward moves in inflation expectations, wage rises and a worsening of supply side conditions. However, if demand weakens over the medium term it would lower pressure on prices.
• The War in Ukraine is severely affecting the euro area economy and has increased uncertainty. The impact of the war depends on how the war evolves, on sanctions and the possibility of further measures.
• Inflation has increased significantly and will remain high over the coming months. We are very attentive to the current uncertainties and will be closely monitoring the incoming data. Calibration of policies remains data dependent.