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Lagarde: Fiscal Support "Crucially Important"; Energy Prices To Stabilise

ECB
Q: What do you expect from the fiscal side, particularly from the EU? Would you like to see common borrowing? Before the war there was already an energy shock. How long lasting do you believe the energy shock may be? If the EU turns its back on Russian oil, there will be a long lasting shock.
  • A: We clearly point out in the monetary policy statement that fiscal support will continue to be crucially important. What form it takes, the leaders will have to decide.
  • We have the assumption that energy prices will throughout the projection horizon stabilise, but not in the short term. What we are not seeing is wage pressure.
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