European Central Bank (ECB) President Christine Lagarde stated on Thursday, at the sixth annual conference of the European Systemic Risk Board, that monetary policy is being adjusted in an effort to try and stop "high inflation" from becoming entrenched.
Lagarde once again reiterated that the monetary policy continues to target the 2% inflation goal, adding that it is of crucial importance to uphold the "resilience of our financial system." Lagarde explained that this "resilience is key in helping the financial system to deliver on its ultimate goal of supporting the real economy."
The ECB head shared that in order to be resilient, financial systems must have "the capacity to withstand an immediate shock" and "the ability to adapt effectively to new conditions."
