Christine Lagarde, head of the European Central Bank, said that interest rates will not fall in a straight line and it may take some time before they are cut again, Reuters news agency reports.
Last week, the ECB cut its interest rates for the first time since 2019, but the decision was followed by a series of statements from members of the institution, indicating that there is little hope for a continuation of monetary policy easing at the next meeting. This was confirmed by the latest statement of the head of this bank, Christine Lagarde.
"We made the right decision, but that doesn't mean interest rates will fall in a straight line." There may be periods when we will not change them," she told reporters.
Christine Lagarde admitted that "there is a chance" that the ECB will not change interest rates for even several meetings in a row.
Reuters reminds us that the market is now fully considering another rate cut this year.
The head of the Eurozone Central Bank said that further interest rate cuts will depend on inflation, wage and productivity data and corporate profitability indicators. True, all of them will finally appear only before the ECB meeting in September.
