European Central Bank (ECB) President Christine Lagarde emphasized the need for caution when considering future interest rate cuts, noting that decisions will be guided by upcoming economic data. Speaking at an event in Washington on Wednesday, Lagarde responded to market expectations for further and possibly larger rate reductions, stressing that careful consideration will be required.
“We need to be cautious because data will come up and will indicate to us what is the state of the economy, what is the state of inflation, of underlying inflation,” Lagarde said. She highlighted that while data will be crucial, judgment will also play a role in determining the timing and scale of any rate changes.
