Central Banks
Lagarde Says ECB Shouldn’t Lower Guard as Inflation Tumbles
- Global wagers on cuts are surging after Wednesday’s Fed pivot
- Remarks come after deposit rate left at 4% for second meeting
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European Central Bank President Christine Lagarde said policymakers mustn’t get complacent following the recent slump in inflation toward 2% — signaling that investor bets on imminent interest-rate reductions may be premature.
“We should absolutely not lower our guard,” she told reporters Thursday in Frankfurt after the ECB left borrowing costs unchanged for a second meeting. “We did not discuss rate cuts at all.”