By Marta Vilar – MADRID (Econostream) – European Central Bank President Christine Lagarde said on Monday that the ECB had increasingly observed indirect inflation effects spreading across the economy in recent weeks.
In an interview with Radio France, Lagarde said that “[i]ndirect effects of inflation, we have absolutely started to see that more or less everywhere in recent weeks.”
She said that the ECB would “necessarily have to take measures” if it began to see evidence of second-round effects, particularly through rising wages.
Asked about the recently announced US-Iran agreement, Lagarde said that, if confirmed in the coming days and formalized through the signing of a memorandum of understanding, it would be “good news.”
“We can only welcome it, above all if it means reopening and de-mining the Strait of Hormuz,” she added.
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