ECB's Stance on Rate Cuts

European Central Bank (ECB) President Christine Lagarde has indicated that the ECB is prepared to implement significant interest rate cuts, if necessary. Speaking at the World Economic Forum, Lagarde emphasized the ECB's readiness to adjust monetary policy in response to evolving economic conditions, without specifying future actions.

Focus on Data and Energy Prices

Lagarde highlighted the importance of incoming data, especially energy prices, in shaping the ECB's policy decisions. She refrained from providing a detailed monetary policy forecast, underscoring the ECB's commitment to data-driven decision-making.

Future Policy Directions

While not ruling out stimulative measures in the future, Lagarde noted that current service inflation levels justify a restrictive monetary stance. She reiterated the ECB's primary mandate of ensuring price stability, acknowledging the need to also consider economic growth in policy decisions.