ECB President Christine Lagarde said, “We have to also stay that course of resilience that we observed in 2022. Stay the course is my mantra for monetary-policy purposes.”
“I hope that in 2023 fiscal policy will not work in a counter-cyclical way to monetary policy,” she said. “We don’t need to be pushed to do more than is necessary.”
Lagarde also noted that China’s reopening “will have inflationary pressure on many of us, simply because the level of energy that was consumed by China last year was certainly less than what they will consume this year, the amount of LNG that [they] will be buying from the rest of the world will be higher than what we have seen and there is not so much spare capacity in terms of oil and gas.”
“So there will be constraints, there will be more inflationary pressure coming out of that added demand,” she added.
