Lagarde Signals ECB Comfortable Holding Rates as Inflation Nears Target

European Central Bank President Christine Lagarde said indicators of underlying inflation point to price growth stabilising at the ECB’s target, with long-term expectations anchored around 2%. She noted that labour costs continue to moderate and wage growth should slow further, reinforcing the outlook for price stability. Lagarde added that the ECB is “in a good place” and well positioned to handle economic challenges, characterising the current policy stance as a wait-and-watch approach. “You could argue that we are on hold,” she said, signalling no immediate change to interest-rate settings.