President Christine Lagarde said an early exit from the European Central Bank isn’t currently an option for her as the eurozone economy navigates challenging times.
“When there is big clouds on the horizon, the captain does not leave the ship – and this captain is not going to leave the ship, because I see clouds,” Lagarde said in an interview with Bloomberg TV in Washington. “When you see major disruption, the energy supply being reduced, when you see threats to growth, upside risk to inflation these are serious matters that we have to be attentive to.”
Lagarde’s comments on Tuesday come after the Iran war and a blockade of the Strait of Hormuz threw the global economy into yet another crisis. The International Monetary Fund sharply lowered its outlook for the 21-nation eurozone and warned of a global downturn if the conflict drags on.
Speculation about Lagarde leaving the ECB before her term expires in October next year ramped up in February after French central bank chief Francois Villeroy de Galhau announced his resignation – a move that will allow President Emmanuel Macron to replace him before elections next spring. She previously said her “baseline” was to stay on.