Christine Lagarde: Interview with Yomiuri Shimbun

Christine Lagarde was interviewed by the Yomiuri Shimbun about her experiences as a woman in leadership and her thoughts on monetary policy. She discussed the Prime Minister Abe's "One Million Women" program, which aimed to increase the number of women in the workplace through various policies such as increasing childcare center availability and providing more flexibility for municipalities.

Lagarde became the first female leader of the European Central Bank (ECB), a position she acknowledged as challenging due to being a minority in a room of 27 male members. She emphasized the importance of institutional strength and governance in maintaining diversity at high levels of governance.

Regarding inflation, the headline rate in October was 4%, higher than expected but consistent with market predictions. The primary driver was energy prices, which increased due to the Middle East conflict and reduced global refinery capacity. Food prices also rose, but core inflation, excluding energy, food, alcohol, and tobacco, remained stable at 2.5%.

Lagarde stated that second-round effects were not yet apparent, and the central bank would continue to monitor indicators like wage agreements and workers' expectations before adjusting projections.

She reflected on the ECB's handling of the 2021 energy shock due to the Russian invasion of Ukraine, acknowledging that the initial decision to "look through" the inflation was misguided as a demand shock also emerged. Lagarde emphasized that the ECB would now adjust monetary policy based on data and meeting by meeting, acknowledging the uncertainty and changing landscape in global economics.