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The head of the European Central Bank believes the institution has borrowing costs right where they need to be, even as different countries across the eurozone show varying economic pictures. Christine Lagarde, who leads the ECB, told a Slovak television channel JOJ24 on Friday that officials made good choices at their latest gatherings. “The interest rates we settled on at the last meetings are, in my view, set correctly,” she said during the broadcast. She added that the bank finds itself in a strong spot considering how inflation has been brought back down. Lagarde did point out some worries on the horizon. Price pressures could start climbing again if the United States decides to raise tariffs or if problems pop up with supply chains around the world. Still, she noted that possible threats to stable prices have gotten smaller. The comments show how satisfied ECB leaders feel about where things stand now. Inflation numbers are hanging around the 2% mark that the bank aims for, while the economy has held up better than many thought it would against American tariff policies. When officials gather in December, most don’t expect they’ll need to change rates. New predictions coming out every three months might spark some conversation if they show inflation falling short of what the bank wants. Notes from the October meeting revealed that some officials worried about this happening, though they felt their current approach could handle unexpected problems. Luis de Guindos, who serves as vice president of the ECB, said this week he only sees a “limited” chance that price growth ends up too weak. He called the current rate level of 2% “the correct one.” Philip Lane, the chief economist, mentioned that wages aren’t growing as fast anymore, which should help slow down costs outside of energy that…

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Filed under: News - @ November 29, 2025 4:12 am