ECB President Christine Lagarde said the eurozone economy now sits between the baseline and adverse scenarios outlined by the bank.
She indicated no current bias toward raising interest rates, emphasizing that monetary policy decisions will depend on forthcoming data.
Lagarde noted 6½ weeks of Middle East conflict have sharply increased energy costs and weakened economic sentiment across the region.
She reaffirmed the ECB’s commitment to act promptly when data warrants, but does not see a short‑term reversal to prior conditions.