DECRYPTION – Christine Lagarde judges the victory against inflation to be on track but is more concerned about activity in Europe.
As expected, the European Central Bank (ECB) lowered its interest rates on Thursday, for the third time since June when it ended its monetary tightening. It cuts its deposit rate, which serves as a benchmark for credit conditions in the economy, by 25 basis points to 3.25%. And it thus recognizes that inflation could stabilize around its objective of 2% more quickly than expected, before the second part of 2025.
Eurozone inflation slowed to 1.7% last month. This is its lowest level in three years and this fall, stronger than expected, pushes inflation below the ECB’s medium-term objective. “ Available information shows that the disinflation process is on track », explained the 25 members of the Governing Council gathered for the occasion in Ljubljana, Slovenia. “ Have we twisted the neck of inflation ? Non ! Are we in…
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