Climate change to affect price stability and monetary policy – Lagarde
European Central Bank (ECB) President Christine Lagarde said during a State of the Union conference on Friday that climate change is already affecting price stability and will eventually impact the monetary policy.
“[It] is pretty obvious, climate change will have — has already — an impact on price stability, whether you look at climate-related events, whether you look at particularly exposed areas, prices will be determined as a result of that,” Lagarde stated.
The ECB is currently conducting a policy review of the entire monetary policy and will be adding climate risks to the report. The institution is also investigating whether lenders in the eurozone are managing their climate-related risks.
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