The President of the European Central Bank (ECB), Christine Lagarde, the course of the World Tariff War with the course of Monetary Policy, speaking today (24.7.2025) in Frankfurt after the announcement of the freezing of the reduction of their interest rate.
“The faster the trade conflicts are resolved, the faster the uncertainties will be dissolved,” ECB’s Lagarde said, adding that “We wait and see.” Now the ECB is in a phase of “waiting and monitoring”, she said. The future interest rate depends entirely on the data, while the current risk environment is greatly affected by the trade conflict.
“We are in a good condition,” the ECB president said. However, the goal is to stabilize inflation in the medium term. According to her, economic growth has evolved positively, as consumption and investment have increased. “We are sure that the shock of inflation in recent years is behind us,” Lagarde says. Now we have to focus on the challenges in front of us.
Asked whether the euro’s appreciation against the dollar at a level of 1.2 is causing a problem, the ECB chief said it is moving in the same context as ECB Vice President de Ginto, noting that “we do not target the exchange rate, but we are monitoring it as the exchange rate, parameter in the determination of monetary policy. “