Lagarde says ECB rates in good place - report

Published 04/07/2025, 08:00
© Reuters.

Investing.com -- European Central Bank President Christine Lagarde stated that the current level of interest rates is appropriate and reaffirmed the ECB’s firm commitment to maintaining its 2% inflation target, Bloomberg reported on Friday. 

She emphasized that ensuring price stability remains the institution’s responsibility and noted that inflation is currently at the desired level, with the ECB determined to keep it there.

Lagarde conveyed that the ECB is fully dedicated to the 2% inflation target and will take all necessary measures to maintain it. 

Despite ongoing uncertainty in the broader economic environment, she indicated that the central bank will provide consistency and stability regarding inflation.

Addressing questions about the future path of interest rates, Lagarde reiterated that the ECB is in a strong and favorable position at present.

Since June 2024, the ECB has cut interest rates eight times. However, it is widely expected to hold rates steady at its next monetary policy meeting later this month. 

With inflation now in line with the target, economists anticipate the possibility of one more rate cut before the end of the year.

On the topic of the euro potentially overtaking the U.S. dollar as the world’s leading reserve currency, Lagarde pointed to the significant economic potential within Europe. 

She called on policymakers to intensify efforts to enhance the region’s economic strength.

She said that the value of the euro will depend heavily on the strength of the European economy and stressed the importance of taking action to reinforce that foundation.

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