European bank chief vows to control inflation during Mideast war

European Central Bank chief Christine Lagarde said Tuesday that "everything necessary" will be done to keep inflation in check during the Middle East war, which has already pushed up oil prices.

"We will do everything necessary to keep inflation under control and ensure that the French and the Europeans do not experience inflation increases like those we saw in 2022 and 2023" partly caused by Russia's invasion of Ukraine, Lagarde told the France 2 and France Inter broadcasters in an interview.

She did not respond when asked whether interest rates would rise, but acknowledged there was a lot of "uncertainty" surrounding events in the Middle East.

The ECB is to meet on March 19 to decide on rates, the day after the next US Federal Reserve meeting.

Lagarde said the situation now was "very different" to the last inflation crisis.

She argued that inflation was currently under control and that "growth is quite resistant" in the EU countries that use the euro currency.

"However, what is very different is that we have a degree of uncertainty and a degree of volatility that is absolutely astonishing, unparalleled to 2022," Lagarde said.

Oil prices came close to 120 dollars a barrel on Monday, up almost 30 percent, before falling back again to about $87.80 in late trading on Tuesday.

Russia's invasion of Ukraine in 2022 sent oil prices close to their 2008 record highs, with the benchmark Brent touching 139.13 dollars a barrel.