European Central Bank President Christine Lagarde stated that the Eurozone economy has deviated from the regulator's baseline scenario due to the conflict in the Middle East; however, the current situation does not warrant a tightening of monetary policy. She made these remarks in an interview with Bloomberg Television in Washington.

In her assessment, economic dynamics currently fall somewhere between the baseline and adverse scenarios previously considered by the ECB. At the same time, there is currently no inclination to raise interest rates, as the regulator remains focused on ensuring price stability.

Lagarde noted that future decisions will be made based on incoming data. The ECB is currently analyzing the repercussions of the conflict—now spanning over six weeks—which has led to a rise in energy prices and a deterioration in business expectations.

The regulator emphasized its readiness to respond swiftly to changes in the situation. However, much will depend on whether the impact of current factors proves to be short-lived, as a return to previous conditions is, in the ECB President's estimation, unlikely.