FX.co ★ ECB Lagarde Vows to Tame Inflation Amid Energy Shock

European Central Bank President Christine Lagarde said the ECB will do whatever is necessary to keep inflation in check, despite the latest surge in energy prices. In an interview on Tuesday, Lagarde emphasized that policymakers are determined to avoid a repeat of the sharp price increases seen in recent years.

“I can assure you ... that we will do everything necessary to keep inflation under control and to ensure that the French, the Europeans, do not experience inflationary increases like those we saw in 2022 and 2023,” she said.

Lagarde noted that Europe is now better placed to absorb the current energy shock than it was during the 2022 crisis, citing stronger policy measures and greater resilience across the region. Still, she cautioned that uncertainty and market volatility remain elevated.