Unanimous Decision on Rate Cuts

European Central Bank (ECB) President Christine Lagarde announced on Thursday that the Governing Council reached a unanimous decision to reduce interest rates by 25 basis points. Contrary to some speculations, no members advocated for a more aggressive 50-point cut, though discussions around pausing cuts or implementing larger reductions were part of recent deliberations.

Impact of Tariffs on Inflation Remains Unclear

Lagarde chose not to detail how tariffs might influence inflation, emphasizing that "many decisions and implementations" are pending. She projected that the overall effect would become more apparent with time. The ECB President underscored the importance of being data-dependent "more than ever," reaffirming the bank's commitment to utilizing all necessary tools to achieve price stability.