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2025-09-20 13:07:03
[Lagarde Says ECB Has Achieved Inflation Target, But Uncertainty Remains] European Central Bank President Christine Lagarde stated that the bank has achieved its inflation control target, but that despite the trade agreement with the United States, uncertainty about the economic outlook remains. In an interview with Danish Broadcasting Corporation (DRTV) aired on Saturday, Lagarde stated, "Interest rates must target the inflation level, and that is the target we set, and we have achieved that." She noted that the future trajectory has become more predictable after the EU and US reached an agreement on increased tariffs, but the situation remains less clear than before US President Trump began imposing tariffs. Lagarde stated, "The level of uncertainty has decreased by about 50%, which is a significant improvement compared to the previous situation. However, 'uncertainty remains, and everyone must deal with it.'" After eight 25 basis point interest rate cuts in a year, the ECB held borrowing costs steady at its second consecutive monetary policy meeting last week. Policymakers expect inflation to temporarily undershoot its target next year before stabilizing around 2%, and that economic growth will gradually resume in the coming quarters.
