President of the European Central Bank, B.C.E, Christine Legarde Spreading optimism for the future ofInflation in the eurozone by announcing that it has a stated goal of bringing it back. 2% It may take center stage sooner than expected. A clear plan can support the hypothesis that the ECB will provide. A reduction in interest rates Already at the meeting December 2024. What nudges the European Central Institute’s number one in that direction are figures he had no trouble describing as “convincing”. Despite the retention caution, So the Eurozone is heading for a victory over inflation.
Inflation ahead of expectations at 2%
Christine Lagarde has expressed her optimism about the fall of the future.Inflation During an interview with Bloomberg TV Issued on the occasion of the annual meetings of the International Monetary Fund and the World Bank in Washington.
“I hope we can reach the goal.Inflation The ECB president said the data was reassuring, at 2% earlier than expected, calling on the general public to remain “cautious” as it is not yet possible to say we have “beaten inflation”.
gave caution This is mainly due to the fact that inflation cannot be completely avoided yet. “We all believe that 2025 This will be the year in which we reach our goal in a sustainable way – said Lagarde – but we must be careful about everything. We have energy prices that are currently lower than where they could be. We have a slight drop in service, but not much, we’re still there. 3.9% In the latest reading and we need to focus on domestic inflation. And again: “What we’ve done since June, in my opinion, is a sensible approach and should continue with that element of caution.”
Expected December rate cut
According to several observers, the hope, though cautious, of Legarde At the first ECB meeting in December 2024, will lead a new meeting. A reduction in interest rates. The most popular assumption is that half a percentage point is subtracted, but, as such, it is supported. Mario Santinogovernor of the Banco do Portugal and member of the ECB’s Governing Council, would only be able to indicate that “it will be 25 or 50 basis points”. “I don’t think the governing council – Santino added – would not consider a faster speed if the data tells us that”.
There are also indications that another member of the ECB Governing Council, Austria, is considering an interest rate cut in December 2024. Robert HolzmanThose who believe that only a sharper-than-expected fall in prices will allow the European Central Bank to intervene in rates again before too long.
ECB President Christine Lagarde, dismissing those statements and rumors circulating on the subject, reiterated the process her institute would follow in the next few months: “All week there will be people who Say, oh, it should be 50, it should be 25. The direction of travel is obvious, using all three criteria and applying the judgment based on the elements of probability. .
