ECB President Key Quotes after the Interest Rate Cut

Lagarde revealed that the ECB’s decision to lower its three key interest rates by 25 basis points was reached unanimously among Governing Council members. She affirmed that there was "no debate on whether the decision was appropriate or not; it was a unanimous choice endorsed by all governors." Lagarde also emphasized that monetary policy remains in restrictive territory, adding that discussing a pause in rate cuts would be premature at this stage. Future policy decisions, she explained, will be based on incoming economic data over the coming weeks and months.

Lagarde: Eurozone Economy to Remain Weak in the Short Term

Lagarde indicated that the Eurozone economy is expected to remain weak in the near term, citing low consumer confidence and continued contraction in industrial activity. She pointed out that households have not yet sufficiently benefited from rising real incomes to significantly boost spending.

However, she reassured that the foundations for economic recovery remain intact, highlighting that the labor market remains strong with low unemployment rates, which could support consumer confidence and spending. Lagarde also noted that lower borrowing costs could enhance both consumption and investment, while exports could further support the recovery—provided trade tensions do not escalate.

Lagarde: Trade Tensions Could Weigh on Eurozone Growth

Lagarde warned that increasing global trade frictions could slow down Eurozone economic growth, adding that such tensions could heighten uncertainty around inflation forecasts. She further highlighted that geopolitical conflicts, including those in Ukraine and the Middle East, could drive energy prices higher, potentially exerting additional inflationary pressures. Despite these challenges, Lagarde expects inflation to fluctuate in the short term before stabilizing around the ECB's 2% target in the medium term.

Lagarde: Tariffs Will Have a Negative Global Impact

European Central Bank (ECB) President Christine Lagarde stated on Thursday that the imposition of tariffs would have a "negative global impact." Speaking at a press conference following the ECB's latest interest rate decision, she emphasized that such measures would be "completely unrealistic" and would further heighten global economic uncertainty. She also noted that any changes to tariffs would depend on several factors, including political decisions and variations in tariff rates across different countries. Lagarde expressed concerns about the potential redirection of trade and the risk of retaliatory measures from affected nations, stressing that policymakers must wait for greater clarity

Lagarde: Central Banks Will Not Hold Bitcoin

During the same press conference, Lagarde stated that she is "confident" that none of the central banks within the ECB’s General Council would hold Bitcoin reserves. She underscored that monetary reserves must be "liquid, safe, and free from risks related to money laundering or other criminal activities."

Additionally, she confirmed that the Governing Council did not consider a 50-basis-point rate cut, clarifying that inflation in the services sector remains high due to its heavy reliance on labor and sensitivity to wage increases. Nevertheless, Lagarde projected that wages would decline in 2025, which could gradually ease service sector inflation.

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