MNI BRIEF: Policy Must Grab Disruption Opportunities: Lagarde

Policymakers reacted quickly and effectively to combat the short-term disruption from the Covid-19 pandemic, but the virus has 'exposed and accelerated' longer-term trends, European Central Bank President Christine Lagarde said Friday, accepting that these trends could generate significant benefits but also disruption during the transition.

Sustaining future growth will require harnessing the possibilities new technologies offers workers and businesses in the most inclusive possible way, Lagarde told the Frankfurt European Banking Congress, with policy makers making sure we can adapt to new environments created by the 'unpredictable shocks we will face'.

Lagarde said decisive policy action will be needed, but noted these policies lie beyond the remit of monetary policy, although they will certainly affect the environment in which central banks operate.