ECB's Lagarde says she is not a French presidential candidate but will advocate for EU

FRANKFURT, July 9 (Reuters) - European Central Bank President Christine Lagarde said on Thursday she was not a candidate in the French presidential race but would advocate for pro-European values in her home country "in whichever capacity" she deemed most efficient.

Lagarde was fielding questions about a possible involvement in France's 2027 presidential campaign after saying last week it was possible that she would leave the ECB early to weigh in on French politics.

"I'm not a candidate for anything, but I'm very keen that Europe is protected, that Europe is the framework within which member states operate, including France," she told the Euronews TV channel.

Asked if she would do that on the campaign trail or in her current role as ECB chief, Lagarde said she "would explain that in whichever capacity I will be most efficient".

The French political scene was jolted this week when far-right leader Marine Le Pen was cleared to run for office by a court despite an embezzlement conviction.

Lagarde was also asked about the recent rise in euro zone inflation as a result of the Iran war, which led the ECB to raise interest rates for the first time in nearly three years last month.

She said the ECB's medium-term orientation meant it only needed inflation to return to its 2% goal in three years.

"We need to see inflation returning to 2% in about three years' time and that's what we have with the projections that we produce," Lagarde told Euronews.

Traders have ramped up their bets on ECB hikes in recent days on signs that an agreement between the U.S. and Iran to end the war is in jeopardy.

(Reporting by Francesco Canepa; Editing by Mark Porter and Jamie Freed)