European Central Bank President Lagarde:
- It will take some time to make sure that inflation is on the right track.
- A strong job market means we have time to gather information.
Speaking about economic uncertainty:
- There is no guarantee of a soft economic landing in the eurozone.
- We should also take into account the fact that growth prospects remain uncertain.
Talking about uncertainty in the future:
- We still face many uncertainties about future inflation, particularly regarding how the relationship between earnings, wages and productivity will evolve and whether the economy will be affected by new supply-side shocks.
The European Central Bank cut interest rates in June, but held off on any future rate cuts, arguing that inflation is too uncertain. The market is pricing in one or two rate cuts between now and the end of the year, and four between now and the end of 2025.