Saturday 07/June/2025 – 09:43 PM
Christine Lagarde, President of the European Central Bank, confirmed that recent monetary policy decisions related to interest rates put the bank in a suitable position to achieve its goal on inflation in the medium term.
In a television interview with the Monaco Info channel, Lagarde said: We believe that we have already reached a good location, noting that the recent decision on monetary policy came carefully.
Lagarde added, during her participation in the ocean event, that the bank’s monetary policy makers will continue to monitor the economic data received to assess whether there is a need to amend interest rates again. She said: “But I think we are currently in a strong position to face periods that may be critical and have a great deal of uncertainty,” she said.
Decreased inflation and the end of the cash facilitation course
The euro area witnessed a decline in inflation rates to below 2%, after a series of interest rates of interest 8 times in a year, at a total of 200 basis points.
In the aftermath of the last decision issued on Thursday, the President of the European Central Bank indicated that the campaign of monetary facilitation is close to its end, stressing that the bank is now “in a good location” to deal with the upcoming challenges, especially in light of the volatile global commercial environment, including American policies.
According to the European Central Central expectations, which were published Thursday, the inflation rate is expected to decline to 1.6% by 2026, to return to the 2% target rate in 2027, while economic growth is expected to improve during the expectation period.
The euro is stable and the monetary policy is effective
At the end of her speech, the head of the European Central Bank stressed that “the euro is in a good situation,” noting that the monetary policy contributed to reducing inflation from a peak that exceeded 10% to the target level at 2%, and added: “We are moving with caution and stability to achieve our goal in the medium term.”
