Central Banks
Lagarde Says ECB to Cut Rates When Sure Inflation Set for 2%
- Most officials see first cut around mid-2024, markets earlier
- Inflation has fallen steeply in recent months, is near 2% goal
Christine Lagarde
Photographer: Liesa Johannssen-Koppitz/BloombergThis article is for subscribers only.
The European Central Bank will start lowering interest rates once it’s convinced that inflation is headed back to its 2% goal, according to President Christine Lagarde.
“I cannot give you a date” for cuts, Lagarde told France 2 TV in an interview Thursday. “But I can say that if we win this battle, if we get to 2% as we estimate in 2025, and if it’s confirmed by the data we will have” in the coming months, “I’m very confident, then rates will start to decline as soon as we have this certainty.”