ECB Pres. Lagarde: it will take time to be certain that inflation is on track | Forexlive

ECB Pres. Lagarde:

• It will take time to be certain that inflation is on track
• strong labor market means we have time to gather information.

Speaking to the economic uncertainties:

• Soft landing for euro zone economy not guaranteed.
• We also need to be mindful of the fact that the growth outlook remains uncertain.

Speaking to future uncertainties:

• We are still facing several uncertainties regarding future inflation, especially in terms of how the nexus of profits, wages and productivity will evolve and whether the economy will be hit by new supply-side shocks

The ECB cut rates in June, but held back on future rate cuts arguing that the inflation was too uncertain. The market is pricing in 1 to 2 cuts between now and the end of the year, and 4 cuts between now and the end of 2025.