European Central Bank (ECB) President Christine Lagarde warned on Thursday that downside risks to economic growth in the eurozone have intensified, citing global geopolitical tensions and weakening market dynamics.
In a presser shortly after the ECB cut interest rates by 25 basis points in a widely expected move, Lagarde pointed to deteriorating market conditions as a key drag on investment and consumption across the eurozone. She added that geopolitical tensions, particularly the wars in Ukraine and the Middle East, remain a "major source of uncertainty." Still, Lagarde also noted that manufacturing activity has shown signs of stabilization after a prolonged downturn and highlighted that defence and infrastructure spending across several eurozone economies is expected to provide additional support.
