ECB's Lagarde plays down eurozone stagflation concerns

ECB chief Christine Lagarde still expects economic growth.

ECB president Christine Lagarde has played down fears about eurozone stagflation, despite Russia’s invasion of Ukraine starting to weigh on the economy while further stoking already-record gains in consumer prices.

The war will have consequences for growth as inflation quickens and confidence is damaged, Ms Lagarde told a conference in Paris. The difficulty for central banks is to maintain price stability without hurting activity, she said.