Lagarde Signals ECB's Growing Confidence in Controlling Inflation
The European Central Bank hints at potential interest rate cuts as inflation shows signs of slowing across the euro zone.
- Christine Lagarde, ECB President, expressed optimism about controlling inflation during her address to the European Parliament.
- Recent data shows a significant slowdown in inflation rates in Italy, Germany, France, and Spain, reinforcing the ECB's positive outlook.
- Italian inflation dropped to 0.8% in September, increasing pressure on the ECB to consider faster interest rate cuts.
- Market expectations for an October rate cut have surged, with an estimated 85% chance of a quarter-point reduction.
- Despite the positive inflation data, some ECB officials remain cautious due to persistent high inflation in the services sector.
Financial Post 
