European Central Bank President Christine Lagarde. (Photo: AFP/VNA)

During a conference in Paris on Monday, Lagarde said the crisis will have consequences for growth driven by high inflation. She said the challenge faced by the Central Bank is to maintain price stability without hurting activity.

Ruling out the possibility of stagflation, she said, “Even in the bleakest scenario, with second-round effects, with a boycott of gas and petrol, and a worsening of the crisis that goes on for a long time — even in those scenarios, the region has 2.3 percent growth.”