European Central Bank President Christine Lagarde has indicated that the risks to inflation and growth within the eurozone have moderated.

Speaking at the ECB's annual forum in Sintra, Portugal on Wednesday, Lagarde stated, "Compared to a few weeks ago, I believe the upside risks to inflation and downside risks to growth are now much more balanced overall, due to what we are currently observing, and these changes are occurring very rapidly."

Lagarde participated in a panel discussion alongside Federal Reserve Chair Kevin Warsh, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem. Just three weeks prior, the ECB became the first central bank among the G7 nations to raise interest rates following the outbreak of the Iran war.

The ECB explained at the time that its decision to hike rates was based on an assessment that the energy shock was permeating the broader economy and that the central bank could not tolerate inflation running out of control.

Since that meeting, numerous shifts have occurred in the monetary policy landscape. Peace talks between the US and Iran have led to a significant retreat in oil prices, removing a primary driver of inflation. The latest data released on Wednesday showed that price growth in the eurozone slowed more than anticipated.

"We are taking all the right actions to ensure price stability," Lagarde said. "We will not let the genie out of the bottle and allow inflation to climb. We will take the necessary actions, and we have already done so."