Mumbai, March 12 -- The level of uncertainty we are facing is exceptionally high, said European Central Bank president Christine Lagarde at a speech on Wednesday. Established certainties about the international order have been upended. Some alliances have become strained while others have drawn closer. We have seen political decisions that would have been unthinkable only a few months ago. This new environment raises fundamental questions for monetary policy, she added. She further said that trade fragmentation and higher defence spending in a capacity-constrained sector could in principle push up inflation. Yet US tariffs could also lower demand for EU exports and redirect excess capacity from China into Europe, which could push inflatio...