Unanimous Rate Cut Decision by ECB

Christine Lagarde, President of the European Central Bank (ECB), announced on Thursday that the decision to reduce the three key interest rates by 25 basis points was unanimous among the bank's governors. This move underscores the ECB's commitment to navigating the current economic landscape with decisive action.

Lagarde emphasized the lack of debate over the appropriateness of the rate cut, highlighting a unified front within the ECB. "There was no discussion as to whether this decision was appropriate or not. It was a unanimous decision," she stated, pointing out the collective support for the decision articulated by Philip Lane.

Future Monetary Policy Directions

Despite the rate cut, Lagarde reassured that the ECB's policy remains in "restrictive territory." She also cautioned against premature discussions on halting the rate cuts, suggesting that any further decisions will be contingent on forthcoming data. "It would be premature at this point in time to discuss halting the rate cuts. Our future decisions will be based on the data collected in the coming weeks and months," Lagarde explained.