European Central Bank (ECB) President Christine Lagarde said the eurozone was “very close” to meeting the central bank's medium-term inflation target, according to an interview published by the Financial Times Monday.
Earlier in December, Lagarde said the central bank would cut interest rates further if inflation continued to approach its 2% target, given that there was no longer a need to curb growth.
“We are very close to the moment when we can declare that we have sustainably brought inflation back to our medium-term objective of 2%,” Ms. Lagarde told the Financial Times, while calling for continued vigilance on services inflation. .
“You know, the latest inflation estimate is 2.2%,” she added. “But services inflation is still 3.9% and is not moving much. It is hovering around 4%.”
Lagarde said she opposed Europe's retaliation to threats of tariffs by new US President Donald Trump.
“I said retaliation was the wrong approach because I think blanket trade restrictions followed by retaliation and this confrontational way of dealing with trade is bad for the global economy as a whole,” she added. .
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