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“Brake” Lagarde on hopes for a further reduction in inflation within the year

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«Φρενο» Λαγκρ νεεεαπετρω ηοηθωμοστου &sigmaf?

From 2026 Christine Lagarde predicts a reduction in inflation

In an oxymoronic decision as no further inflation reduction is expected for the rest of the year in the eurozone, the ECB has decided reduction of interest rates by 1/4 of the unit. Of course, this does not mean that the Bank will reduce interest rates again this year.

We are not committed to a specific path with interest rates, ECB President Christine Lagarde clarified at the press conference after the Governing Council's decision. “, stressed Mrs. Lagarde.

“We will keep the monetary policy restrictive for as long as necessary”, repeated the head of the European Central Bank.

Inflation expected to ease to 2% in b ' half of 2025

However, Christine Lagarde expects that inflation will move to current levels, mainly due to the cost of energy, for the second half of 2024. Besides, as mentioned in the ECB's decision, regarding inflation without energy and food items, they predict that it will average 2.8% in 2024, 2.2% in 2025 and 2.0% in 2026.

“If wages rise further, this could push inflation upwards “, warned the head of the ECB. “The incremental nature of the wage and labor cost adjustment process is likely to fluctuate in the near term,” he added.

Source: 24h.com.cy

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