TechFlow news, according to Jinshi News, European Central Bank President Lagarde said in an interview with the Financial Times on December 23 that inflation in the eurozone is approaching the 2% medium-term target, but service sector inflation still requires close attention. Lagarde favors a "gradual" approach to policy easing, cutting interest rates by 25 basis points at a time. Markets expect the ECB to make four rate cuts in 2025, potentially lowering the deposit rate from its current 3% to 2%.
Gabriel Makhlouf, Governor of the Central Bank of Ireland, supports the gradual rate-cutting strategy and warned that views suggesting the neutral interest rate is below 2% may be premature. In addition, Lagarde expressed concerns over Trump's trade war policies, stating that retaliatory trade measures would harm the global economy.
