ECB’s Lagarde says price stability priority before growth

PARIS: The European Central Bank’s action may weigh on growth but price stability is the main priority, President Christine Lagarde said on Friday at an event with French high school students.

Speaking at the French central bank, she said that in setting its monetary policy the ECB had to take into account all elements affecting inflation, as well as the risks weighing on growth.

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“Will that weigh on growth?” Lagarde added. “It’s possible, but it’s a risk we have to take … because price stability is a fundamental and principal dimension.”