ECB President Christine Lagarde’s speech today marked a departure from previous guidance shaped by high inflation and significant uncertainty.
Lagarde highlighted that the earlier approach, which aimed to maintain restrictive rates “for as long as necessary,” is no longer aligned with the ECB’s evolving outlook for inflation and risk balance.
However, with “disinflation process well on track” and growth risks becoming more pronounced, ECB now aims for an “appropriate” policy approach.
She reiterated that if data continues to confirm their expectations, ECB expects to lower rates further.
