Unanimous Decision on Rate Cut

European Central Bank (ECB) President Christine Lagarde announced a unanimous decision to reduce interest rates by 25 basis points this Thursday. Contrary to some expectations, there was no suggestion from the Governing Council for a more aggressive 50-point cut, despite recent debates over both pausing the cuts and implementing a larger reduction.

Future Inflation and Tariffs

Lagarde did not delve into the specifics of how tariffs might affect inflation, noting that "many decisions and implementations" are still pending. She emphasized that the overall impact will only become apparent with time, underscoring the ECB's commitment to being data-dependent in its approach to achieving price stability.

ECB's Commitment to Stability

Reiterating the ECB's dedication, Lagarde highlighted the central bank's readiness to utilize all necessary tools to ensure price stability, marking a cautious yet determined path forward in uncertain economic times.