x

Economy

European Central Bank Chief: No Data Suggests Stagflation

NICOSIA — No data currently suggests Europe will fall into stagflation, a combination of high inflation, little or no economic growth and high unemployment, the European Central Bank ‘s president said Wednesday.

Christine Lagarde said at a Bank of Cyprus conference in the Cypriot capital that at this time, “we don’t have the two elements that characterize” stagflation — a drawn-out recession and inflation that continues to rise.

Lagarde said that although inflation will “no doubt” increase this year because of high fuel and food prices, the bank doesn’t forecast it will keep rising and would eventually decline to “our target of 2%.”

The European Central Bank chief said the conditions remain “quite fluid” because of the disruption caused by Russia’s invasion of Ukraine and that the bank is constantly revising different scenarios about where things could lead.

Lagarde said she’s certain the bank will sift through data earlier than the scheduled June meeting of its governing council to reassess the situation.

“I’m sure that we will be doing that earlier than June because it is actually a fluid situation,” Lagarde said. “We have to be extremely attentive, extremely prudent. We have to monitor data.”

Speaking earlier following talks with Cyprus President Nicos Anastasiades, Lagarde said that in light of the war in Ukraine, the bank is trying to ensure price and financial stability and that sanctions against Russia are strictly implemented.

“We are very keen that the sanctions which have been decided at the European level be also observed and implemented with total integrity and rigor and this is what needs to take place indeed,” Lagarde said.

RELATED

NICOSIA - A Cypriot anti-racist organization, Far Right Watch Cy denounced what it said was an attack against Turkish-Cypriots by a group of Greek-Cypriots and warned it could lead to retaliation and further tension on the island.

Top Stories

Columnists

A pregnant woman was driving in the HOV lane near Dallas.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

Video

Jimmy Carter Becomes First Living Ex-President with Official White House Christmas Ornament

WASHINGTON (AP) — Former President Jimmy Carter has another distinction to his name.

ATHENS – Seeking to improve the educational outcomes of disadvantaged children in Greece, The Hellenic Initiative (THI) designated SOS Children’s Villages Greece as the beneficiary of its annual End-of-the-Year Appeal for 2023, raising $80,000 worldwide.

NEW YORK – The Greek Orthodox Volleyball League season is in full swing.

WATERFORD TOWNSHIP, Mich. (AP) — The Michigan Republican Party was deep in debt when a longtime party donor who had given more than $1 million over the past decade asked for a meeting with its chairwoman.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. [email protected]

You may unsubscribe at any time using the link in our newsletter.