European Central Bank Approaches Inflation Target, Signals Further Rate Cuts
European Central Bank President Christine Lagarde announced that the ECB is nearing its inflation target of 2% for the Eurozone but remains cautious about rising service sector inflation, currently at 3.9%. Lagarde indicated that further interest rate cuts are anticipated as the ECB aims for an optimal inflation level, having already reduced rates four times this year. Projections for 2025 and 2026 suggest inflation levels of 2.1% and 1.9%, respectively, allowing for continued easing of monetary policy despite increasing growth risks.