Lagarde speech: Ukraine war to have material impact on economic activity and inflation

In her usual post-meeting press conference, ECB President Christine Lagarde said that the war in Ukraine is set to have a material impact on Eurozone economic activity and inflation. The extent of the effects depend on the evolution of the conflict, she noted, adding that the ECB considered a range of scenarios in its meeting. 

The Eurozone recovery has been boosted as of late by the fading of Covid-19 infection rates and by further progress in the labour market. However, growth estimates have been revised down in the near term, while inflation is now seen as more broadly based.