European Central Bank President Lagarde: Unable to announce the end of the interest rate cut cycle, policy stance will remain flexible.

European Central Bank President Lagarde said on Tuesday that the current monetary policy is in a good position relative to the economic situation, but she cannot announce that the rate-cut cycle has ended. In an interview, Lagarde noted that global uncertainty has significantly eased since reaching a trade agreement with the United States, and economic growth risks are becoming balanced, while inflation risks are relatively balanced as well. However, when asked if the easing cycle is over, Lagarde emphasized, "I will never say that, because the work of a central bank president never truly ends." Lagarde stated that the ECB is satisfied with its current policy stance and believes that the current interest rate levels will help achieve the 2% inflation target. She added, "We are ready to respond when necessary. The current situation is good, but there will always be unexpected events." Since last year, the ECB has cut interest rates eight times in a row, bringing the deposit rate to -2%. Investors generally believe that the rate-cut cycle is largely over, but some officials still want to retain the possibility of further easing in case of future weak economic growth leading to prolonged inflation below target. The latest forecast from the International Monetary Fund (IMF) this week shows that the outlook for the European economy remains weak. The IMF expects the eurozone's GDP growth to reach 1.2% in 2025, slightly higher than previously expected, but slowing to 1.1% in 2026. This data is largely consistent with the ECB's own forecasts, which will be updated in December. Discussion on further rate cuts may heat up again at that time. Lagarde concluded by saying, "We have largely controlled inflation, the current situation is good, but we must be prepared for new uncertainties at all times."