ECBs Lagarde stays cautious on rate cuts, urges competitiveness reforms [Video]

Christine Lagarde, President of the European Central Bank (ECB), has reiterated she will maintain a data-driven approach to monetary policy highlighting that, despite recent disinflationary trends, the ECB is far from pre-committing to an aggressive easing cycle.

In a conversation with Frederick Kempe, President and CEO of the Atlantic Council, Lagarde explained that the ECB’s interest rate decisions would continue to depend on incoming economic data, underlining the need for cautious in assessing the evolving economic conditions.

“We are confident that the disinflationary path is underway and that we could continue to dial back the restrictive monetary policy, but we need to be cautious,” she stated, emphasising that any future cuts will be determined by the data.

While the ECB has already …