Central Banks

Lagarde Says ECB Ready to Cut Rates Soon If Inflation Eases More

  • ECB head tells CNBC ‘disinflationary process’ taking place
  • Officials are preparing to cut deposit rate from record 4%

Christine Lagarde

Photographer: Alex Kraus/Bloomberg

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The European Central Bank is closing in on a reduction in interest rates as long as shocks don’t derail the slowdown in euro-zone inflation, according to President Christine Lagarde.

Lagarde told CNBC on Tuesday that officials in Frankfurt are “observing a disinflationary process” that’s currently in line with expectations and should sustainably return consumer-price growth to 2% by mid-2025.