Lagarde says euro-area economy is resilient, digital euro imminent

“The digital euro will further stimulate innovation and competition in retail payments,” according to the ECB president.

European Central Bank President Christine Lagarde said September’s 3.8% euro area inflation rate largely reflected high energy costs, which the ECB expects to ease next year.

Lagarde said while an energy shock is expected to keep euro-area inflation above the bank’s target through the first half of 2027, a measured policy response remains appropriate, according to a statement delivered at the IMF Annual Meetings on Saturday.

Lagarde added that meanwhile, the ECB is devising a digital euro. “In the retail space we are preparing to complement cash with its digital equivalent — the digital euro — for day-to-day payments. The digital euro will further stimulate innovation and competition in retail payments, ensuring that the continued co-existence of public and private solutions underpins Europe’s strategic autonomy in payments.”

Read more