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.
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Interest Rate Reduction and Inflation Outlook
- The ECB lowered key interest rates by 25 basis points to address inflation and support monetary policy transmission.
- The disinflation process is on track, with inflation projected to average around 2% in the coming years.
Domestic Inflation Dynamics
- Domestic inflation remains high due to delayed wage and price adjustments in certain sectors.
- Wage growth is moderating, and profits are partially buffering the impact on inflation.
ECB's Commitment and Approach
- The ECB is committed to stabilizing inflation at its 2% medium-term target.
- They will adopt a data-dependent and meeting-by-meeting approach to monetary policy decisions.