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30.01.2025

ECB's president Lagarde says a 50-basis-point rate reduction was not even discussed

European Central Bank President Christine Lagarde, commenting on the outcomes of the ECB's latest policy meeting, emphasized that the euro area labour market remains robust and that conditions for recovery are in place. She also noted that most underlying indicators have been developing in a way that supports a sustained return to the inflation target. Although inflation has experienced some fluctuations, she expressed confidence that it will return to the target level. Lagarde also acknowledged that risks to economic growth remain tilted to the downside and cautioned that the Eurozone's economy is set to remain weak in the near term

In addition, the ECB's chief reiterated the central bank's commitment to a data-dependent approach, stressing that policymakers are not pre-committing to any specific rate path. Lagarde added that she believes that monetary policy remains in restrictive territory at this point in time. She noted that the decision taken at this meeting was unanimous and stressed that future moves are to be determined by incoming data.  Also, Lagarde revealed that the ECB has not yet discussed whether it is time to stop cutting rates. 

Addressing speculation about a more aggressive rate cut, Lagarde said that a 50-basis-point rate reduction was not even discussed. She also dismissed the idea of Bitcoin entering the reserves of any member of the General Council.

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