European Central Bank president Cristine Lagarde said on Tuesday that she is absolutely confident that the euro area's inflation target will be reached sometime in 2025. However, she added that it is too soon to say when the price target will be met.
The ECB's boss noted that wage growth is starting to abate now. Also, she admitted that not all inflation components need to be at 2%.
In addition, Lagarde said that the pace of the ECB's rate cuts is to be determined later but noted that she doesn't want to speculate on what it would take to cut 50 basis points.