The President of the European Central Bank stated that the risks of inflation and growth have eased, and the current situation is changing very rapidly.

European Central Bank President Lagarde said that the risks facing inflation and growth in the Eurozone have eased somewhat. At the ECB's annual forum in Sintra, Portugal on Wednesday, Lagarde said, "Compared to a few weeks ago, I believe that the upside risks to inflation and the downside risks to growth are now roughly more balanced, due to the situation we currently observe, and these changes have happened very quickly." Lagarde participated in a panel discussion with Fed Chair Jerome Powell, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem. Just three weeks ago, the ECB became the first central bank among the Group of Seven to raise interest rates following the outbreak of the Iran war. The ECB explained that the decision to raise rates was based on an assessment of the energy shock and its impact on the overall economy, and that the bank cannot tolerate runaway inflation. Since that meeting, there have been many changes in the monetary policy arena. Peace talks between the US and Iran led to a significant drop in oil prices, eliminating a key driver of inflation. The latest data released on Wednesday showed that the Eurozone's inflation rate slowed more than expected. "We are taking all the right actions to ensure price stability," Lagarde said. "We will not allow inflation to spiral out of control. We will take necessary action, and we have already taken it."