Frankfurt (Reuters) – The president of the European Central Bank (ECB), Christine Lagarde, said Thursday that inflation prospects were “more uncertain than usual” due to trade tensions and the appreciation of the euro since the start of the year.
“Inflation prospects are more uncertain than usual due to the instability of the global trade environment. A stronger euro could lower inflation more than expected,” she said at the press conference that followed the institution’s monetary policy decision.
The BCE president, however, declared that the indicators of underlying inflation were generally in accordance with the target of 2% targeted by Frankfurt.
The ECB has dropped its main key rate at 2.0%on Thursday, as expected, marking a break in its monetary softening cycle after eight borrowing costs since June 2024 and while the vagueness remains on customs duties which will ultimately be applied to European imports in the United States.
(Written by Diana Mandiá, edited by Jean-Stéphane Brosse)
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