ECB President Confident Inflationary Shocks Are Over

In a significant announcement, European Central Bank (ECB) President Christine Lagarde expressed confidence that the inflationary pressures which have challenged the Eurozone in recent years are now a thing of the past. This statement came during a press conference following the ECB's latest policy meeting.

Stable Rates and Economic Growth

The ECB decided to keep its three key interest rates unchanged, a move that Lagarde described as part of a strategy to ensure long-term economic stability. With inflation hitting the medium-term target of 2%, the Eurozone's economy is showing signs of robust health, supported by a surprising 0.6% growth in the first quarter.

Challenges Ahead

Despite the positive outlook, Lagarde highlighted ongoing risks, including potential disruptions from U.S. tariffs and supply chain bottlenecks. The ECB remains cautious, avoiding commitments on future rate paths to navigate these uncertainties effectively.