Lagarde believes current rate level will help the ECB cope with turbulence

ECB President Christine Lagarde stated during a session at the International Monetary Fund’s annual meetings that the existing level of the European Central Bank’s key interest rates equips the regulator to handle any challenges the global economy might encounter.

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Lagarde believes current rate level will help the ECB cope with turbulence © Daily Management Review

Lagarde stated that risks to inflation and economic growth in the Eurozone have become more evenly matched.

She observed that inflation in the Eurozone, similar to the deposit rate, stands at 2%.

“We are confident that at the current interest rate, we are adequately prepared and positioned to handle any potential future disruptions,” she stated.

Earlier this week, the IMF increased its GDP growth prediction for the Eurozone this year by 0.2 percentage points, bringing it to 1.1%, and reduced its 2026 forecast to 1.1% from 1.2%.

source: reuters.com

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