Lagarde said that the European Central Bank has already achieved its inflation target, but uncertainty still exists.

European Central Bank President Lagarde said the bank has achieved its target of price regulation; despite reaching a trade agreement with the United States, uncertainties still exist in the economic outlook. In an interview aired on Saturday by Danish Broadcasting Corporation, Lagarde said, "Interest rates must be targeted at the inflation level, which is our target and we have already achieved it." She pointed out that the future direction has become more predictable after the EU and the US reached an agreement to raise tariffs, but the situation is still not as clear as before President Trump imposed tariffs. Lagarde said, "The level of uncertainty has decreased by about 50%, which is a significant improvement compared to previous situations. However, 'uncertainties still exist, and everyone must address this issue.'" Following eight 25 basis point rate cuts within a year, the European Central Bank maintained borrowing costs unchanged at its second consecutive monetary policy meeting last week. Policymakers expect inflation to temporarily fall below target levels next year, stabilizing around 2% thereafter; the economy is also expected to gradually resume growth momentum in the coming quarters.