European Central Bank cuts interest rates by 25 basis points
The interest rate was reduced by 25 basis points from 2.40% to 2.15%, as the decision came as expected, and the statement did not contain any prominent details. The ECB also emphasizes its continued reliance on data.
Lagarde's comments were as follows:
- Most of the basic actions indicate this.
- Inflation will stabilize at the target.
- The risks of economic growth still tend to decrease.
- The fragmentation of global supply chains may raise inflation, and may also boost infrastructure spending.
- We believe that we are in a good position to overcome the growing uncertainty after today's interest rate cut.
- Today's decision was almost unanimous and there was one opponent.
- I am absolutely determined to fulfill my mission and complete my mandate.
- The growth rate in the first quarter, of 0.3%, may be raised due to trade distortions before the imposition of tariffs in April.
- Retaliatory measures are not included in the upcoming forecasts on trade scenarios.
- We did not discuss the concept of a neutral interest rate at this week's meeting.
- We are approaching the end of the monetary policy cycle in response to recent shocks.
- Customs duties and the appreciation of the euro may hinder exports.
- We are well positioned to cope with the upcoming uncertainty conditions.
