In a news conference after the announcement of the latest policy update by the European Central Bank, its president Christine Lagarde said today's decision to keep rates unchanged was unanimous, as well as the decision to remain data-dependent and take decisions on "meeting by meeting" basis.
The official also suggested that the Eurozone's second-quarter growth was likely slower than in the first quarter but noted the risks of economic growth are tilted to the downside.
She also said that inflation in the euro area is expected to fluctuate around current levels for the remainder of the year, partly due to base energy effects, and is seen to decline to the ECB's target in the second half of 2025.
In addition, Lagarde admitted that the region's labour market is more resilient and suggested that more jobs were likely created in the second quarter, mainly in the services sector.
Regarding pay growth, the ECB's chief noted that wages are still rising at an elevated rate but the latest surveys indicate that wages will moderate over the next year.
answering the question about the prospects of a September rate cut, Lagarde said what the ECB's policymakers do in September, is wide open and will be determined based on all the data they will be receiving.