European Central Bank (ECB) President Lagarde said on Wednesday that she could not commit to a predetermined number of interest rate cuts even after starting to lower borrowing costs. Photo taken in January (2024 Reuters/Kai Pfaffenbach)
[フランクフルト ２０日 ロイター] – European Central Bank (ECB) President Lagarde said on Wednesday that she could not commit to a predetermined number of interest rate cuts even after starting to reduce borrowing costs. The statement was made at a meeting held in Frankfurt.
“Decisions will be data-driven and made on a meeting-by-meet basis, and we will respond to new information as it comes in.” “This means we cannot pre-commit to a specific interest rate path, even after the first rate cut.”
The ECB cited the slowdown in wage growth, continued reductions in inflation and new internal forecasts which confirm that inflation is returning to its target of 2% as necessary conditions for the ECB to start cutting interest rates.
“These data reveal enough consistency between our forecasts and the path of underlying inflation that, assuming transmission remains strong, we could move into the unwinding phase of the policy cycle, it will possible relaxation of policy restrictions.”
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