Lagarde attributed the slight contraction of the Eurozone's real GDP in the third quarter to a combination of factors, including the broadening impact of higher interest rates, weak foreign demand and the fading impetus from the reopening of the economy post COVID-19.

Concerning monetary policy, Lagarde confirmed that the ECB's future policy rates would be set at sufficiently restrictive levels for as long as necessary to meet its target of bringing inflation down to 2%.

The bank raised its key rate 10 times in a row within a year. The ECB's deposit rate stays at a record high 4% while the main rate stands at 4.5%.