By Marta Vilar – MADRID (Econostream) – European Central Bank President Christine Lagarde said on Saturday that the inflation target was now ‘within reach’. 

In an interview with Chinese news agency Xinhua, Lagarde said that the ECB was ‘within reach of the 2% medium-term inflation target that we have defined as price stability.’ 

Investment was being affected by uncertainty caused by recent developments or threats of decisions, she said. 

‘It is leading all institutions to reduce their growth projections for the global economy, for the United States, for China and for Europe. It's really a lose-lose situation that we have at the moment’, she added. 

If uncertainty was not removed and the situation was not dealt with successfully, businesses would ‘rethink their supply chains’, she said. 

‘They will rethink their supply and their sourcing, and that will cause more fragility and a period of uncertainty, during which growth will probably be impaired, during which we could have inflationary pressure as a result’, she said. ‘And I think this is not in the interest of any country.’ 

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