18 April | Euro

ECB President Christine Lagarde stresses need for further rate cuts

ECB President Christine Lagarde stresses need for further rate cuts

Speaking at the press conference following the European Central Bank’s (ECB) decision to cut rates by 25 basis points, ECB President Christine Lagarde showed an increased sense of urgency, pointing to several key factors, including escalating trade tensions and growing disinflationary pressures.

Initially, the ECB took a cautious approach to monetary policy. But now, the situation calls for stronger action to prevent inflation in the eurozone from falling too low.

Just a few weeks ago, some ECB officials were still pushing for maintaining rates unchanged. But the euro strengthening and sliding energy prices convinced them that monetary easing was necessary. According to Lagarde, economic risks in the region have intensified while inflation forecasts have grown more uncertain.

During the meeting, the ECB also discussed a more aggressive 50 basis points rate cut, but ultimately opted for a unanimous decision to lower borrowing costs by just 25 basis points. ING analysts suggest this cautious approach reflects policymakers' desire to maintain flexibility in case the economic outlook improves later.

Elena Dorokhina MarketCheese
Period: 18.09.2025 Expectation: 160 pips
Buying gas with $3.150 target amid completing correction
Yesterday at 11:58 AM 93
Period: 12.09.2025 Expectation: 720 pips
Buying EURUSD amid expectations of weaker US inflation report
Yesterday at 10:57 AM 59
Expectation: 1000 pips
146.8–148.5 flat floor continues to lure USDJPY
Yesterday at 10:32 AM 87
Period: 18.09.2025 Expectation: 39000 pips
Buying ETHUSD with $4,790 in sight amid weak US economic data
Yesterday at 08:51 AM 87
Period: 12.09.2025 Expectation: 250 pips
Selling SPX if US inflation exceeds forecasts
Yesterday at 08:40 AM 94
Period: 31.10.2025 Expectation: 950 pips
Buying AUDCAD from 0.9030 level
10 September 2025 77
Go to forecasts