European Central Bank President Christine Lagarde stated that the regulator will continue to maintain a flexible approach to monetary policy amid ongoing geopolitical instability. She made this statement during a speech at Johns Hopkins University in Bologna.

According to her, future interest rate decisions will be made without a predetermined course. ECB policy will be determined on a meeting-by-meeting basis and will depend on incoming macroeconomic data.

Lagarde emphasized that the regulator will rely on the most comprehensive set of economic information possible. An analysis of all available data will allow for a more accurate assessment of the impact of current global events on the eurozone economy and financial stability.

The ECB leader noted that the combination of a flexible approach and a data-driven approach will allow the European financial system to better respond to external shocks. In particular, the regulator is closely monitoring the impact of geopolitical tensions on inflation and economic growth.

The conflict in the Middle East remains a factor of uncertainty. Potential increases in energy prices and supply chain disruptions could impact inflation and economic performance in eurozone countries, so the ECB intends to continue monitoring the global situation.