European Central Bank (ECB) President Christine Lagarde remarked on Monday in her speech at the Deutsche Boerse’s annual reception that inflation is a 2023 challenge that «concerns» her «the most,» which is why the institution will have to continue to raise interest rates «significantly» and «at a steady pace.»
Lagarde stressed that the global economy is at «a crucial turning point» in «a fast-changing world» in which Europe has to find the best way to protect its interests. «As an economy that is very open to trade and deeply integrated into global supply chains, we are vulnerable to geopolitical headwinds,» she said, describing geopolitics as having the main influence on the global worldwide at the moment.
Lagarde noted that, to ensure that, Europe has to show it is «a leader, not just a follower. And […] we have the capacity to do so.»