Sintra: Central bank chiefs and economists gather at the annual forum in southern Portugal on Monday evening to discuss the best approach to addressing the inflation challenges from Russia’s invasion of Ukraine. About 200 delegates will attend the European Central Bank Forum on Central Banking at a luxury hotel in Sintra, west of Lisbon, after two years of virtual gatherings imposed by the coronavirus. When European Central Bank President Christine Lagarde last attended the event, it was in 2014 in her previous role as Managing Director of the International Monetary Fund. In addition, US Federal Reserve Chairman Jerome Powell and Bank Governor Andrew Bailey will participate. England.
He will be joined by BIS Managing Director Agustín Carstens and scheduled to discuss all four issues at a symposium on Wednesday, the last day of the forum. In its annual report released on Sunday, the Bank for International Settlements warned that central banks should not allow inflation to gain a foothold as the global economy is threatened by stagflation. “The key to central banks is to act quickly and decisively before inflation spikes,” Karstens said in the report.
Lagarde’s keynote speech
Lagarde’s speech on Tuesday morning will be closely followed by the markets. The European Central Bank is preparing to raise interest rates on July 11 – the 11th for the first time in years – in response to rising inflation. This has raised concerns about the risks of the debt crisis in the eurozone, as northern and southern European countries are rising differently in interest rates to borrow and finance their deficits.
The European Central Bank recently had to work to reassure investors on the issue, and any new details about what it plans to do will be followed closely. The mood for the meeting is likely to be serious. According to European sources, Lagarde told EU leaders in Brussels on Friday that the war in Ukraine had a clear impact on the eurozone.
Higher prices for gas and imported raw materials were putting pressure on inflation and this was supposed to continue for some time. According to the same source, the uncertainty created by the war affected economic activities. After the shock of the COVID-19 pandemic, central banks initially saw the return of inflation as temporary, as the economy picked up pace again. But prices have risen sharply since the Russian invasion of Ukraine in February. – France Press agency