European Central Bank (ECB) President Christine Lagarde dismissed risks of stagflation in her speech at the Institut Montaigne, in Paris, on Monday.

“Policies to fight climate change will probably raise inflation in the medium term but be deflationary in the long run,” Lagarde said.

Market reaction

EUR/USD is keeping its renewed upside intact above 1.1050 on Lagarde’s comments. The pair is now up 0.05% on the day at 1.1055.