MNI BRIEF: ECB To Provide Liquidity, Stability - Lagarde

Optionality and flexibility will be at the centre of the ECB’s response to monetary policy response to the macroeconomic effects of Russia’s invasion of Ukraine, president Christine Lagarde said Friday, with the ECB standing ready to implement “decisively and rigorously” the sanctions against Russian imposed by EU governments.

It would be premature to assess precisely the economic impact of the current conflict, Lagarde said, with “fine-tuned” growth and inflation projections incorporating available data to be published on March 10. Energy prices are likely to increase in the short term, as will uncertainty, pushing up inflation acting as a drag on growth.

The ECB will make sure that confidence is maintained, and that liquidity and cash are made available where needed, she said, and will act quickly to ensure that price and financial stability are maintained.