European Central Bank President Christine Lagarde stated that long-term inflation expectations remain largely in line with the 2% target, despite the deepening impact of the conflict in Iran.
Speaking to reporters following a Eurogroup finance ministers' meeting in Nicosia, Cyprus, she noted, "Although the energy crisis is driving up inflation and weighing on the economy, long-term inflation expectations remain well anchored overall."
She added, "The impact of this war on medium-term inflation and economic activity will depend on the intensity and duration of the energy price shock, as well as the scale of its indirect transmission effects."
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