Reported 6 months ago
The European Central Bank's decision to cut interest rates while indicating a slower path for inflation to reach 2% has left investors uncertain about the ECB's future policy direction. President Christine Lagarde acknowledged the improved inflation outlook but refrained from confirming a shift in policy direction. Although markets still anticipate another rate cut this year, doubts on the timing have arisen, with concerns about the ECB's credibility if rates are reduced while inflation remains high. The recent decision to lower rates marks a change in strategy aimed at stimulating the economy after a period of stagnation and mild recession, yet rising data on inflation and costs suggest a complex path ahead, with uncertainty over future rate adjustments.
Source: YAHOO