Christine Lagarde alerted about the commercial tension, spoke of the future of the rates and denied his departure from the ECB

The president of European Central Bank (ECB), Christine Lagarde, He warned Thursday that the increase in global commercial tensions could negatively impact economic growth and exercise new pressures on inflation, while confirming that the institution is reaching the end of its restrictive monetary policy cycle.

After the decision of the Governing Council of the ECB of Cut interest rates at 25 basic pointscarrying the deposit rate at 2% – his lowest level since December 2022 – Lagarde said that The ECB is well positioned to face an uncertain economic scenario. The decision was adopted “almost unanimously”, with only one member of the Council voting against.

“At the current level of interest rates, we believe that we are well positioned to face the uncertain conditions that are coming,” said Lagarde during the press conference in Frankfurt.

The president of the ECB recognized that the current monetary policy cycle has developed in response to A series of accumulated shockssuch as the Covid-19 pandemic, the war in Ukraine and the energy crisis. However, he warned that The new stage will be marked by “different actors, different partners and different policies”in allusion to the changing geopolitical and economic panorama.

Revised projections

In line with the rate cut, the ECB updated its macroeconomic projectionshighlighting that inflation will follow a descending path:

• 2% in 2025in line with the objective of the ECB,

• 1.6% in 2026although Lagarde said that the rate “will undoubtedly return to 2% in 2027”.

As for growth, the ECB I checked slightly down Its estimate for the first quarter of 2025, 0.4% to 0.3%although Lagarde did not rule out that this figure can be corrected later. Despite the confidence in the direction of the economy, he stressed that the environment is still fragile.

Risks due to commercial tensions

Lagarde stressed that one of the main sources of uncertainty are the Growing global commercial tensionswhose potential impact is not yet contemplated on the base stage of the ECB. The president warned that the consequences of an escalation in commercial retaliations, and political decisions in exports and imports could alter growth and inflation forecasts.

“We will continue to analyze, evaluate, measure and ensure to meet our goal of 2% in the medium term,” Lagarde insisted.

The message was clear: although monetary policy seems to be entering a stage of greater stability, the ECB will maintain a data -dependent position, Evaluating meeting to meeting The effects of macroeconomic and geopolitical evolution to make future decisions.

Lagarde denies early departure from the ECB: “I am determined to fulfill my mandate”

Christine Lagarde on the rumors of a possible early way out of the European Central Bank to assume the presidency of the World Economic Forum:

“I can tell you with total firmness that I have always been, and I am, completely determined to fulfill my mission. And I am determined to complete my mandate. So I’m sorry to tell them that they will not get rid of me so easily.”

These statements were made at the press conference after the ECB’s decision to cut rates, after the Financial Times He published that Klaus Schwab – a founder of the Wef – would have made “practical arrangements”, such as the preparation of an apartment in Switzerland, so that Lagarde assumed that position before he finished his mandate in 2027.

Although He did not directly denied that there were conversations with the World Economic Forum, Yes, it made it clear that he has no intention of leaving his post in the ECB early. He even accompanied him with a theatrical gesture, shrugging his shoulders, in a relaxed tone.