Lagarde: Stronger euro could push eurozone inflation below target

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Lagarde: Stronger euro could push eurozone inflation below target
Photo: Markus Schreiber AP/TT

A stronger euro could push inflation in the eurozone below its inflation target, Christine Lagarde, head of the European Central Bank (ECB), warns. She says the inflation outlook is more uncertain than usual.

The statement was made at a press conference after the ECB left its key interest rates unchanged, with its key deposit rate at 2 percent.

The announcement was expected, despite slightly lower core inflation in January, according to preliminary figures from the statistics agency Eurostat on Wednesday.

The economy continues to show resilience in a challenging situation, the ECB said in its interest rate statement.

The outlook is described as uncertain, especially with regard to trade policy and geopolitical tensions.

The Bank of England also left its policy rate unchanged on Thursday - just like the US Federal Reserve (Fed) last week.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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