ECB Chief Defends Rate Hikes But Sees Recession Risks; Pushes Climate Action

The ECB raised interest rates to fight high inflation, but this slows growth. Lagarde defended the moves as necessary to fulfill the ECB's mandate for price stability.

Lagarde acknowledged the ECB's forecasting models were ill-equipped for recent crises. The ECB is working to improve projections.

Inflation is declining from peak levels but remains high. Lagarde said ECB rate hikes have contributed to the slowdown.

Lagarde sees recession risks but expects growth to pick up in 2023. She says employment levels remain high.

Lagarde urged united European action on climate change and energy security. She said the transition must be fair and sustainable.