The European Central Bank will continue its approach of not committing to a rate cut path and taking decisions at each meeting depending on the latest data on inflation and the economy, its president Christine Lagarde said after the Governing Council’s decision today. Council of the Bank to reduce interest rates by 25 basis points (a quarter of a percentage point).

In December, therefore, when the next meeting of the ECB is scheduled, it will be decided whether to cut interest rates again, based on the latest data that will see the light of day in the next six weeks.

Ms Lagarde cited today’s decision as an example of the approach she is taking, as the data released after the September meeting were all down, whether on prices or economic activity.

This, he said, boosted board members’ confidence that inflation was on track to meet its medium-term target of 2%, leading to the unanimous decision to cut interest rates.

The ECB president referred to inflation falling to 1.7% in September from 2.2% in August and the negative surprise on economic activity last month, based on survey data.

Responding to the question whether the ECB now gives more importance to the growth of the economy than to the reduction of inflation, he clarified that the course of the economy is taken into account because it significantly affects the outlook for inflation.

Despite the decline in activity in September, the ECB’s expectations of a soft landing for the Eurozone economy remain, Ms Lagarde said, adding that there does not appear to be any risk of a recession in the economy.

Answering a question if the possibility of a further reduction in interest rates – by 50 bps – was discussed today, he said that the only suggestion made was for a reduction of 25 bps. and this was discussed.

On the risk of inflation falling below the 2% target, the ECB president said there were risks of both that happening and inflation moving above 2%