Lagarde Says Risks to Inflation, Growth More Broadly Balanced

Summary

ECB President Christine Lagarde, speaking at the ECB's retreat in Sintra, said that risks to euro-area inflation and growth have become more broadly balanced, driven in part by the rapid decline in oil prices. She highlighted the accelerating pace of change influenced by AI and the need for new measurement tools and scenario analysis to improve policy decisions.

• Lagarde says inflation and growth risks are now more broadly balanced.
• She notes the acceleration of change, driven by AI.
• Oil prices fell from $120 in March to $72 a barrel, illustrating the speed of market moves.
• The ECB is using scenario analysis (mild to severe) for robust decisions.
• Lagarde emphasizes the need for new measurement tools and AI to assess inflation and risk more accurately.