ECB President "Risk Downward Prices...Keep cutting interest rates"

ECB President Christine Lagarde said there was a downside risk to prices and said she would cut policy rates further."If our standards continue to be confirmed by the indicators coming in, the direction is clear and we expect to lower interest rates further," Lagarde President
told a conference in Vilnius, Lithuania, today (16th).

He then said inflation risks were also changing as the shock of the past disappeared, explaining that weaker-than-expected growth prospects and increased uncertainty stemming from geopolitical issues were downside risks to prices.

He said the ECB's stance on keeping policy rates sufficiently constrained no longer reflects changing macroeconomic and price risks.

The ECB has cut deposit rates by 100 basis points and 1 percentage point on four occasions this year.Lagarde
said it was difficult to predict the effects of the trade dispute in the United States due to variables such as fluctuations in exchange rates, raw material prices and potential retaliatory measures on tariff policies foreseen by U.S. President-elect Trump.