At the 2026 World Economic Forum annual meeting in Davos this week, European Central Bank President Christine Lagarde sat down with CGTN correspondent Guan Xin for a wide-ranging conversation. The discussion covered the current global macroeconomic landscape, the future of monetary policy, financial stability challenges and the crucial role of international cooperation amid growing uncertainty.
On the global outlook, Lagarde painted a picture of uneven recovery. While advanced economies have seen inflation gradually ease from pandemic-era peaks, many emerging markets continue to grapple with supply chain disruptions and energy price shocks. 'We are observing diverging paths,' she said, noting that growth in some regions may slow further if central banks over-tighten monetary policy.
Regarding monetary policy, Lagarde stressed a balanced approach. 'Our goal remains price stability, but we must proceed with caution to avoid stifling growth,' she explained. The ECB has maintained its key interest rates at elevated levels since late 2024, and although markets expect rate cuts later this year, Lagarde emphasized that any move will depend on incoming data on inflation and employment.
Financial stability also featured prominently. Lagarde highlighted the importance of robust supervision and risk management in a world of interconnected markets. She pointed to recent stress in the banking sector as a reminder that local shocks can spread quickly without coordinated safeguards. 'Resilience must be built collectively,' she argued.
Finally, on international cooperation, Lagarde called for renewed collaboration among central banks, fiscal authorities and multilateral institutions. In an era of geopolitical tensions and climate risks, she warned that unilateral action could amplify vulnerabilities. 'Stronger ties and shared frameworks are our best defense against future crises,' she concluded.
For young professionals, entrepreneurs and global citizens, Lagarde's insights offer a roadmap for navigating the economic uncertainties of 2026. Whether you're a digital nomad tracking currency shifts or a startup founder assessing credit conditions, the interview underscores why staying informed and connected across borders has never been more vital.
Reference(s):
Live: At Davos — In conversation with ECB President Christine Lagarde
cgtn.com
