European Central Bank (ECB) President Christine Lagarde said on Thursday that the bank is not pre-committing to a particular rate path because of the growing uncertainty in trade.
"I can only observe that the disinflationary [process] is on its way. It's a process that is moving accordingly, and according to our expectations. Our interest rate and monetary policy is meaningfully less restrictive than it was, and we operate in a world of high uncertainty," Lagarde said.
The ECB president noted that to understand the impact of United States tariffs on growth and inflation, the bank will need further clarification and data that it does not currently have. She expressed hope that negotiations between the US and the EU will mitigate and "hopefully avoid" the negative consequences of the tariffs for the bloc, noting that she believes the tariffs will also negatively affect the US.
