European Central Bank President Christine Lagarde announced potential interest rate cuts if inflation continues to move towards the target of 2%. With the ECB having already cut rates four times in 2023, investors anticipate further easing due to concerns about weak economic growth. Lagarde emphasized the shift from restrictive rates as inflation pressures ease, highlighting a neutral rate range of 1.75% to 2.5%. She cautioned that geopolitical risks could negatively affect growth in the euro area.