War in Ukraine “has a serious impact” on the eurozone economy-economic policy

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Christine Lagarde said the war in Ukraine has had a “serious” impact on the eurozone economy, as rising energy prices, supply chain disruptions and diminished confidence have clouded the outlook.

“The war in Ukraine has had a serious impact on the eurozone economy, and uncertainty has increased significantly.”At a virtual press conference, the governor of the European Central Bank said. “The impact of war on the economy will depend on the development of conflict, the impact of current sanctions, and possible additional measures,” she added.

These uncertainties explain the attention of parents in the euro area. This is unlike other major central banks Has not started raising the key rateNor did it even define an exact schedule for raising prices in an attempt to curb soaring prices.

“Continuously high energy costs, coupled with loss of self-confidence, can reduce demand and curb consumption.”Lagarde said it is thus squeezing growth in the euro area. La Fran├žaise painted a less encouraging picture of the economic situation “War is already emphasizing business and consumer confidence, especially through the uncertainties that accompany it. Energy and commodity prices are skyrocketing. Homes are facing the cost of life.” “Companies face higher production costs and the war has created new bottlenecks,” in the supply chain.

Therefore, at the end of the board, the institute was pleased to repeat the March signal in support of price stability.Announced that the purchase of net worth under APP will end in the “third quarter”. The primary rate hike will come “some time after” the end of these repurchases.Or, “for a week or a few months,” Lagarde said.

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The ECB maintained its rate at historically low levels on Thursday.

“The war in Ukraine has had a profound impact on the eurozone economy and uncertainties have increased significantly,” the European Central Bank governor said in a virtual press conference. “The impact of war on the economy will depend on the development of conflict, the impact of current sanctions, and possible additional measures,” she added. These uncertainties, unlike other major central banks, have not begun to raise key interest rates, saying, “High sustainable energy costs, coupled with loss of confidence, reduce demand and curb consumption. It is possible, “said Lagarde, who is squeezing growth in the euro area. La Fran├žaise painted a less encouraging picture of the economic situation. “War is already emphasizing the trust of businesses and consumers, especially through the uncertainties it entails. Energy and basic product prices are strong. In the supply chain,” businesses face higher production costs. However, the war has created a new bottleneck. “On the other hand, the institute repeatedly signaled in March to support price stability and announced a net purchase price. Some of the assets that run within the framework of the APP end in the “third trimester”. According to Lagarde, the first rate hikes will occur “after a while” and “a week or a few months after” these redemptions are completed. The ECB maintained its rate at historically low levels on Thursday.

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