Christine Lagarde, president of the European Central Bank. Photo: Alex Kraus/Bloomberg
“Any fiscal responses to the energy price shock should be temporary, targeted and tailored,” European Central Bank (ECB) president Christine Lagarde has warned.
As she effectively told European governments not to over-react with big ‘cost of living’ type supports, the ECB itself was in ‘keep calm and carry on’ mode on Thursday, holding its key interest rate at 2pc even as the Middle East went up in flames.
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