The ECB Podcast
President Lagarde presents the latest monetary policy decisions – 6 March 2025
Mar 4, 2025
Christine Lagarde, President of the European Central Bank and a key figure in global monetary policy, discusses crucial updates on the ECB's recent decisions. She highlights the strategy to curb inflation and achieve the 2% target. The conversation dives into the current economic performance and the anticipated developments in prices. Lagarde also addresses the risks facing the economic outlook and shares insights into maintaining stability in the euro area amidst high inflation and challenging lending conditions.
16:15
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Quick takeaways
- The ECB's decision to lower interest rates aims to stabilize inflation around 2% despite ongoing economic challenges and uncertainties.
- Risks such as geopolitical tensions and global trade uncertainties could hinder euro area growth, even as rising incomes may support consumption recovery.
Deep dives
Interest Rate Decisions and Inflation Projections
The Governing Council has decided to lower the three key ECB interest rates by 25 basis points, particularly focusing on the deposit facility rate which guides monetary policy. This decision stems from a reassessment of the inflation outlook, which reflects a stable disinflation process. Projections suggest that headline inflation will average 2.3% in 2025, driven by stronger energy price dynamics, while the core inflation rate is expected to hover around 2% over the medium term. The ongoing adjustments in wages and prices, particularly in certain sectors, indicate that inflation will likely stabilize at the target level, supported by moderating wage growth.
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