Frankfurt (Germany), July 24 (LaPresse) – "Inflation is currently at our medium-term target of 2%." This was stated by the President of the European Central Bank (ECB), Christine Lagarde, during a press conference in Frankfurt. The new data are "broadly in line with the Governing Council’s previous assessment regarding inflation prospects," Lagarde added, noting that "domestic price pressures have continued to ease, alongside a slowdown in wages."
"Economic growth risks remain tilted to the downside," Lagarde continued, adding that the eurozone economy is heading towards "moderate expansion." She also highlighted ongoing risks tied to trade tensions and tariffs announced by the United States. "Trade uncertainty could reduce investment and consumption," she explained, while at the same time, "a trade agreement could improve sentiment and economic activity."
"The economy has shown resilience even after previous rate cuts. In the first quarter, growth was stronger than expected," Lagarde said, adding that "there was modest expansion in both the services and manufacturing sectors." However, "the macroeconomic outlook remains uncertain. Due to the uncertainty surrounding tariffs, businesses are more reluctant to invest."
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