Christine Lagarde: Monetary policy in an uncertain world

Speech by Ms Christine Lagarde, President of the European Central Bank, at "The ECB and Its Watchers XXII" conference, Frankfurt am Main, 17 March 2022.

The views expressed in this speech are those of the speaker and not the view of the BIS.

The Russian invasion of Ukraine has cast a shadow over Europe.

It has called into question the fundamental tenets of our security, based on territorial sovereignty and respect for international law and human rights. And it has revealed our collective vulnerability born out of economic dependence on hostile actors. As Europe's leaders declared last week, this war of aggression constitutes a tectonic shift in European history.

The ECB's Governing Council stands by the people of Ukraine, who have been subjected to this horrific act of aggression. As the central bank of the euro area, we will play our part in the common response. We will implement the sanctions decided on by the EU and we will take whatever action is needed to secure price stability and safeguard financial stability.