Central Banks

Lagarde Says ECB to Cut Further With Inflation Close to Goal

Officials to ‘close to achieving’ price-stability target
Services inflation should come down, president says in Vilnius

WATCH: Lagarde says the ECB is likely to reduce interest rates by more as the 2% inflation target moves closer and “if the incoming data continue to confirm our baseline.”Source: Bloomberg

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By Milda Seputyte, Alexander Weber, and Mark Schroers

December 16, 2024 at 2:33 AM EST

Updated on

December 16, 2024 at 4:21 AM EST

The European Central Bank will lower borrowing costs further as the inflation spike of recent years increasingly moves into the rear-view mirror, bringing the 2% target within reach, President Christine Lagarde said.

After a “lengthy period of restrictive policy,” the accuracy of economic projections has improved and officials can concentrate on managing future risks instead of worrying about the transmission of past shocks, she said Monday in a speech, also citing evidence that still-elevated services inflation will ease in the coming months.