The eurozone economy is facing significant shocks due to crisis in trade, defense and climate, possibly enhancing inflationary instability and increasing the risk of becoming more persistently the price rise, ECB President Christine Lagarde warned Wednesday.

These events make it impossible for the ECB to emit some policy intention, but make it imperative to reinforce efforts to inflate 2%, Lagarde said in a speech in Frankfurt.

The ECB has reduced interest rates six times since June, But last week she was not clear about her future policy.

“Our expectations have really been limited in recent years, and especially in recent weeks,” Lagarde said in a speech. ‘We saw political decisions that would be unthinkable just a few months ago » Lagarde stressed, leaving spikes for Donald Trump.

The fragmentation of international trade is likely to lead to larger, more subversive price changes and could, in principle,, like additional defense costs, lead to higher inflation.

However, such a vibration is likely to neutralize each other and eliminate the pressure on prices, he argued.

The key issue for the ECB is that inflation reacts disproportionately more strongly to large shocks than in small, and such large crises could make inflation more durable.

These disproportionate reactions to prices, coupled with the current wage setting mechanism, are at risk of creating persistent inflation problems.

“If such a state -dependent pricing is given when the economy is affected by large shocks, but the frequency of wages remains below that of price adjustment, we could see inflation become more persistent,” Lagarde argued.

The Central Bank cannot promise to keep inflation at 2% and cannot give specific instructions on the direction of its policy.

But the bank must chart policy so that inflation will always converge towards 2% in the medium term and must describe the so -called “reaction function” so that businesses and households always know how to influence politics a particular crisis.

“We can be clear about the functioning of our reaction, and above all how we are likely to be affected by the changing conditions and what kind of data we will consider,” the ECB president said.