ECB to cut interest rates once it is sure of 2% inflation

European Central Bank President Christine Lagarde said the bank would start cutting interest rates once it is confident that inflation is on track for the 2% target. European Central Bank (ECB) President Christine Lagarde said the bank would start cutting interest rates once it is confident that inflation in the euro zone is on track for the 2% target. “I can’t give you a date. But I can say that if we win this battle, if we reach 2% as we forecast in 2025 and if the data that we will get in the coming months confirms that, then with that certainty that we have, we will start cutting rates,” Lagarde said in an interview with France 2 TV on Thursday. ECB officials, meanwhile, differ from markets on the timing of the first cut in interest rates following the sharp slowdown in inflation. While investors think the first of six interest rate cuts they have forecast this year could come in April, most policy makers say mid-year is more realistic. Speaking earlier on Thursday, ECB member Boris Vujcic said markets were too optimistic about the timing of the first rate cut and that it was too early to discuss the issue.