Lagarde speech: Either we cut or pause but we will be data dependent to extreme
In an interview with CNBC on Tuesday, European Central Bank (ECB) President Christine Lagarde said that they must be flexible and prepared to take action, per Reuters.
Key takeaways
"I'm sure there is scope with negotiations with Trump."
"Either we cut or pause but we will be data dependent to extreme."
"Europe should lower internal trade barriers."
"Tariff impact on growth is detrimental."
"Disinflationary path is clearly on its way."
"I don't think Europe has been unfair to US in trade."
"Euro strength is counterintuitive."
"We're heading to target over course of 2025."
"I can't say there's definitive downside risks materialisation on inflation."
"Inflation projection for 2025 likely at 2.1%."
"The net impact of tariffs on inflation is to be seen."
"We'll be as predictable as is possible."
Market reaction
EUR/USD stays under modest bearish pressure following these comments. At the time of press, the pair was down 0.4% on the day at 1.1465.
Source : Fxstreet
