Interview with Christine Lagarde, President of the ECB, conducted by Hironari Akiyama on 4 November 2026
7 November 2026
On the glass ceiling and women in power – could you share your own experiences for Japanese women, not least because you know their situation as well?
I discussed this topic a lot with Prime Minister Abe and his wife. He was determined to make a change for Japan at the time, and he had this programme called “One Million Women”. He got one million additional women into the workplace by implementing quite a few policies that were really helpful, like giving more freedom to the municipalities to open childcare centres.
So thanks to Prime Minister Abe things changed a lot. And it helped women access positions of professional responsibility.
At the ECB you became the first female leader. Did you have any difficulties or challenges in terms of being the first woman to lead the ECB?
It’s always challenging to be in a minority. In Governing Council meetings, when I look around the table, there are 27 people seated, and only two women. So that’s definitely a minority. Isabel Schnabel, who is a Member of the Executive Board and who is stepping down at the beginning of January, and me. So just two. It’s always a challenge when you’re a minority, but I think when you reach that sort of high level, because you are the President, people have to accept that, because it’s a matter of institutional strength and it’s a matter of governance as well. But it’s challenging, yes, of course.
But the situation has not changed from seven years ago. I mean, seven years ago, there was…
There was one single woman.
What do you think? Why did this happen?
Those decisions are made by the governments of the Member States and, typically, governments go for a man. First of all, because I think that while the pipeline of talented women is building up, this is only a recent development. And second, because people tend to choose other people who look like them. So you have many men in government, and they tend to appoint other men.
I want to ask about monetary policy. Sorry to change to a serious question. How do you see the inflation outlook now?
The other one was serious as well. Both questions are serious.
Headline inflation in October was at 4%, which was higher than we had expected a few months ago but in line with market expectations. It looks very high. But it’s important to look under the hood.
It’s largely attributable to energy, because energy inflation increased to 20.8%, up from 18.9% in September, driven by the conflict in the Middle East and less global refinery capacity. So energy is weighing heavily on our inflation numbers. Food inflation has also increased.
But the underlying indicators are stable. Core inflation, taking out energy, food, alcohol and tobacco, was 2.5%, unchanged from September. Services inflation edged up a little to 3.3% but remains in the range we have seen over the last four months.
We still don’t have the detailed inflation breakdown, which will shed more light on what’s driving services inflation – that is, whether it’s mainly very energy intensive sectors like transport or whether we are starting to see broader indirect effects. We’ll look closely at this.
In any event, we know that inflation numbers will remain high in the quarters to come. The higher they are, and the longer they remain high, the greater the risk to our medium-term target.
How about second-round effects? Are they still limited?
Yes. We are currently not seeing signs of second-round effects beyond what we have incorporated in our projections. We’re watching carefully the forward-looking indicators – multi-year wage agreements, companies’ wage expectations – and we don’t see evidence of a shift yet.
I understand, but can we expect you to revise the projections upwards because inflation is at 4%?
I don’t think it’s appropriate to pre-empt the forecast. But clearly there have been some important changes since our September projections. Energy futures curves are higher, which will have a bearing on both inflation and growth, although oil prices have come down more recently. Long-term interest rates are also higher. Our forecast exercise will determine how these different forces affect medium-term inflation.
Looking back to 2021, to the energy shock and the Russian invasion of Ukraine, some people have pointed out that the ECB was behind the curve.
Yes. I know
It’s so important for Japanese people to know what you learnt about that.
It’s not something that was specific to Europe, but to all of us. I remember vividly the discussions we had at the Bank for International Settlements, and everybody from the Federal Reserve, the Bank of England, the Bank of Japan, the ECB, we all assessed that we were facing a supply shock that was going to be transitory. As a result we decided that it was appropriate to look through it and let supply-driven inflation come back down, just as it had gone up. That was, in hindsight, misguided because the situation was much more complicated. There was a demand shock happening at the same time as the economy reopened and consumers spending their built-up savings. So that led us all to revisit our assumption that it was all transitory.
So, learning from this, do you think there is a need for an interest rate hike before any secondary effects become apparent?
I think what we have experienced recently, and are still experiencing, massively, is uncertainty. Unpredictability. The fragmentation of the world as we knew it. Trade disruptions, supply chain disruptions, and a focus on security more than efficiency – all of that is completely changing the landscape in which economic players are operating. And as a result of that situation, we have established that we will decide our monetary policy on the basis of data and meeting by meeting.
So, I cannot tell you today that we will for sure do this in December. What I know is that, on the basis of the information we have today, it would take significant changes for the direction of travel to be different from what I expect. That’s what I said during my press conference.
I want to change the subject and ask you about France. We are very worried about France as long-term interest rates have risen. So, how do you assess the risk of France’s fiscal problem spreading to the euro area? Do you have any concerns about this?
The long end of the curve has risen across the world, so it’s not only a European phenomenon. And it’s caused by several factors, such as higher inflation due to geopolitical disruptions, higher sovereign debt issuance globally and competition between sovereign financing needs and the hyperscalers. You have sovereigns with a high level of debt which need more financing. And you have the hyperscalers and the whole AI sector, which is also in need of financing. So, you have competition.
Now, in Europe, those Member States that have a high debt level are even more sensitive to these higher global rates, and that’s what we observe. So, it makes the requirement to comply with the fiscal framework even more acute and stronger, and that’s what we have advocated for in our monetary policy statement. Please, Member States, apply the rules, respect the rules, play by the rules.
Will you use the Transmission Protection Instrument if necessary?
We have multiple tools. We have a big toolbox, and no tool is ruled out in advance. They all correspond to certain criteria and conditions, and require a judgement call by the Governing Council. Whatever is appropriate and called for will be used, under the conditions and with the criteria that would apply.
You also mentioned AI. In Japan, there have been lots of cyberattacks using AI. I would like to ask about the risk of AI, especially for financial stability or payment systems. How do you prepare?
Well, you’ve put your finger on something that is very important to all of us, because cyberattacks have always been on the horizon and on our radar, but propelled by AI, they’re becoming even more dangerous. So, it makes defence and the financing of defence, as well as cooperation between institutions, even more crucial. So whether it’s in the context of the Financial Stability Board or the Bank for International Settlements, all central banks and all central bank governors need to work together to make sure that we have the highest level of response, just in case there are malign actors who want to attack any of us, because we all depend on each other.
Including the Bank of Japan?
Oh yes, of course, absolutely.
I want to ask about the cooperation between the ECB and the Bank of Japan. At the Davos meeting – you were there – Canadian Prime Minister Mark Carney called for “middle powers”. Do you support this idea? And is it possible for Europe and Japan to build closer economic cooperation?
I think it’s a wonderful project on the part of Prime Minister Carney, who is a good friend of mine. I think some people find the term “middle power” offensive because they regard themselves as a big power. But I don’t think that the words matter, really. I think that Japan, Europe, Canada and others – I would include the United Kingdom, for instance – we can very well share the same principles, have the same objectives, and want to join forces when the previous global order is disrupted to the point where we don’t feel secure anymore.
So not words, but action.
Yes.
You decided to step down early. Of course this is a difficult decision on the personal level, but when you announced it to your colleagues, to the Board, to ECB staff, how did it make you feel?
It has been seven years of my life, very active, difficult, with strong commitments in troubled times. It has not been a walk in the park. It has been one challenge after another, intense work in very close cooperation with my colleagues. We are a team that has formed over the course of years, which has both lost and gained members – these are the rules of the game. The institution stands constant, but Governors come and go, Presidents come and go. It is always with some emotion that you decide to go, that it’s the end.
But it’s something that would have happened anyway. It’s just happening a little less than nine months earlier than would otherwise have been the case. It is a moving moment because you leave behind seven years of your life. Seven years of, as I said, hard work, cooperation, sacrifices and sometimes very difficult times.
Yes, indeed, some wobbly years. So, can you share with us what you feel has been your biggest achievement, as well as what you would have handled differently in hindsight?
Well, first of all, I don’t like to live with regrets. I’m happier with hope than with regrets. You cannot rewrite history anyway. But perhaps in relation to one of the questions your colleague asked about how we interpreted the supply shocks of 2021-22: in retrospect, if we could change history, I would like to have diagnosed the simultaneous demand shock from reopening. But you can’t roll back the clock.
What I think I have achieved, and what is maybe a little more distinctive, is the fact that I have brought the ECB Governing Council together into a very cohesive group. The ECB is not an extension of national central bank policy-making. We have managed to form a team that decides collectively what the outcome will be for the group, while also taking account of considerations at the national level.
As a finance minister, I’ve seen decisions being taken so many times in Brussels and then, going back to the national level, say to Paris, Berlin or Dublin, it switches to “oh, we decided that in Brussels, but here at home things are different”. We don’t have that and I think that’s valuable for the institution.
I think I’ve occasionally brought a little bit of fun as well. Because when I look around the room, sometimes I see serious thinkers with a smile on their face.
That’s quite an achievement. Economists tend to be serious people. Now, on the reasons behind your decision to step down early. You explain that you feel a deep urge to speak more freely, which obviously makes us curious what is it that is so urgent for you to say. What are the values and the principles that you feel are under attack?
On a global level, I see a set of principles and values coming under attack. These are principles and values that I personally hold in the highest regard: the rule of law, international cooperation, trade as a principle of prosperity and growth, respect for all cultures and people. These are ideas that have been very much part of how I grew up and that have been with me throughout my life. And now I see them being threatened.
So, those principles are under attack and it matters to me that I stand up to defend them. In my home country, there is a lot at stake with the presidential election coming up. And I see a lot of key questions, key issues, either not being debated, or being debated with wrong facts, based on the wrong principles.
When I hear one of the candidates who is relatively high in the polls say that sovereign debt should be burnt, I can’t just stay completely quiet and I want to be able to speak up, on the facts, the data, the truth, not silently listen to invented propaganda.
Do you think that speaking up will be enough, or do you also envisage a more active role or even participating in the presidential elections?
I know that I’m respected in many corners – not all corners, some people don’t like me at all, and that’s fine. But my voice is listened to and I think that I cannot just stay put, watching on comfortably from the sidelines, without speaking out..
You have never stepped back from new challenges. Is there still drive enough for a new one?
Energy and drive? Oh yes, plenty of it!
That’s good to hear. Because you’ve ruled out in the past becoming a candidate for the French presidential elections…
It’s not my plan. It’s not my future. But I want to be able to speak up in that debate.
How about chairing the World Economic Forum?
It’s one of the options. I have said that before and I’m still saying it: there is nothing definite or decided, but it’s one of the options.
There have been big protests and demonstrations by students in France. What are your thoughts on this?
Especially when seen from Japan, I hope Japanese writers and listeners can draw the line between the legitimate protests of students, people with legitimate concerns, and those who are exploiting the situation to cause chaos.
For the students, it has to do with practical things like having good buildings for studying, having professors who are replaced when needed, having toilet paper in the bathrooms – things like that, which matter for day-to-day life. But also concerns about their futures, anxiety about what they inherit from us: debt, a climate crisis, AI, uncertainty about their jobs.
For other people who have joined the demonstrators it is about affordability – inflation is eating up their income. So, that’s one thing which is perfectly right and should be debated and addressed.
And then there’s the other side of those protests, which is unacceptable and should be banned and stopped. This has to do with riots, looting, stealing property and breaking things, which serves no purpose other than to create chaos. That should go. This is not the rule of law as I understand it.
On the digital euro, Japan is also considering a central bank digital currency, but the euro is more advanced on this front. Do you have any plans to share ideas or experience with Japan, also on cooperation and interoperability?
Absolutely. It’s a project that has been designed to work for people in Europe first and foremost – in euro, as a digital form of our currency. But interoperability with other CBDCs around the world: of course! This could, for example, involve interlinking the euro area’s Target Instant Payment Settlement system with fast payment systems in other jurisdictions. Such steps could strengthen the trade and financial relations with key partners. They could also pave the way for central bank digital currencies to be used to make cross-border payments in the future. We need to have that dialogue and that cooperation.
We are talking about central bank money, and of course, the Bank of Japan is concerned about central bank money as well. If it wants to explore a digital form of central bank money, then we would be very happy to compare notes and to share experiences. If there is interest, then we really would be happy to work together.
Do you have a message for Governor Ueda? You are quite familiar and friendly with him, it seems?
I would tell him: keep up the good work! You know, he’s wonderful, and he is a very strong man. He is more reserved, but he’s so strong. Whenever he speaks in groups, at the BIS, the Financial Stability Board, and all these places, everybody listens. Everybody listens to Japan when Governor Ueda speaks. Because he’s very analytical in his comments. And he’s very open to sharing his views and his analysis.
He now has difficulties in view of normalising monetary easing policies.
But he has raised interest rates. And he does not need my advice.
Japan’s economic power has weakened in comparison to a few decades ago. Do you still think cooperation between Europe and Japan is important?
Oh yes, of course. You were a thriving economy. Then you had this terrible real estate crisis because a combination of real estate and banking coming together was a big shock to the economy. You had ten years of fatigue, to say the least, and it always takes a long time to resolve a real estate crisis. You went through that, and now I think the country is coming back.
Just like us, we have this in common, we are ageing societies, and we have to face that reality because this is a problem that we are going to carry for a long time. We need to address that from an innovation and productivity point of view, and with a very carefully designed immigration policy, if society can live with it. I know it is complicated.
Japan and the United States had a foreign exchange intervention last July, do you remember?
Yes, I do remember!
Were you angry about it?
No, because anger takes you nowhere. I think it was a good opportunity for all of us to remember the commitments on foreign exchange matters. But I’m not going to comment on this because I think it’s an area where we are better off staying quiet rather than speaking up.
You always wear nice brooches and nice scarves. When leading a Governing Council meeting, how do you decide what to wear? I’m very curious if there is any meaning behind it, like today’s starfish brooch?
I think it’s out of respect for other people, but also respect for oneself, that we should dress properly and convey a feeling of confidence, solidity and serenity. And I try to dress accordingly. I tend never to be scruffy. I was not raised that way. I was always reminded by my mother that you should be careful about what you wear, what colours you choose and what impression it’s going to make.
So, as a central banker, you are expected to be calm and to be in control. To know what you are talking about. And I think certain colours or a certain combinations of colours can carry that message.
And another thing which I can tell you about my scarves is that I’ve spent the last 30 years travelling all the time to different places. I remember at the International Monetary Fund, I would travel from Washington to Moscow, from Moscow to Tokyo, from Tokyo to Beijing, from Beijing to Hawaii, from Hawaii to Chicago, and from Chicago back to Washington in one trip! And with one suitcase! But, what’s crucial for me is to always carry two or three scarves or shawls.
Because when you go from one warm country to a cold country and from one air-conditioned place to a place without air conditioning, you are always better off if you have something to protect your throat. So, scarves are a sign of colour and a little elegance, but they are also quite good when you want to protect your health.
What do you think about the US midterm election outcome and its impact on the global economy?
I have always had faith in the American people. I think it was Churchill who once said that the American people eventually find the best solution after having tried all the other ones. I think that there’s a process that is underway at the moment. It’s an institutional and governance regime that lives well with checks and balances: you have a Republican President, you have a Democratic Congress, you have a judicial power that serves the principles of justice. Let’s hope that this system of checks and balances will give better results and will help foster more international cooperation.
Do you have fond memories of Prime Minister Abe?
I really liked Prime Minister Abe. I thought he was a wonderful representative of Japan, and he was courageous as well. You know, he said things to President Trump when Trump won that not many leaders said to him very openly. He was a strong leader.
Now Japan has a female Prime Minister for the first time.
I have never met Sanae Takaichi, but of course I am very happy that Japanese women now have a role model.
