Central Banks

ECB Won’t Be ‘Paralyzed by Hesitation’ on Iran, Lagarde Says

WATCH: “We will not be paralyzed by hesitation,” Lagarde said at The ECB and Its Watchers conference in Frankfurt. “Our commitment to delivering 2% inflation over the medium term is unconditional.”Source: Bloomberg

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By Mark Schroers and Jana Randow

March 25, 2026 at 8:45 AM UTC

Updated on

March 25, 2026 at 12:52 PM UTC

The European Central Bank will act decisively and swiftly if the current surge in energy costs risks a broader bout of inflation, though for now it’s still assessing the shock caused by the Iran war, according to President Christine Lagarde.

While the situation is different from 2022, when Russia’s invasion of Ukraine ultimately sent consumer-price growth into double digits, there are “reasons for vigilance,” Lagarde said Wednesday in a speech.