ECB's Lagarde Navigates Between Early and Late Action on Iran War, Inflation Impact

According to Spanish national television, European Central Bank President Christine Lagarde said on May 9 that the ECB is carefully weighing its response to the Iran war and its impact on inflation to ensure it neither acts too early nor too late. Lagarde stated that policymakers face "enormous uncertainty" and need "more data" to understand the conflict's effects.

Lagarde declined to comment on whether the ECB will raise rates next month as many expect. She said: "We are navigating between the risks of acting too quickly and acting too late, and we must find the right path to guide our economy toward the 2% medium-term inflation target—that is our goal."