ECB President Christine Lagarde has announced that the bank’s 2% inflation target is now within reach.
In a Wednesday New Year’s video message, Lagarde emphasized the substantial progress made in reducing inflation throughout 2024. She expressed optimism about 2025 and predicted it would be a pivotal year in achieving the ECB’s planned objectives.
Lagarde reiterated the bank’s dedication to maintaining inflation sustainably at its medium-term target of 2%.
Lagarde described the ECB’s “big, heavy agenda for 2025,” highlighting key priorities such as reviewing monetary policy strategies, developing a digital euro, and revamping the eurozone’s banking system.
While consumer price inflation in the eurozone slowed over the past year and dropped below the ECB’s target in September, recent months have seen a resurgence of inflationary pressures.
Despite this rebound, policymakers implemented rate cuts in the fourth quarter, and economists now forecast four additional rate reductions by June.
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