Lagarde: No rush to cut interest rates

European Central Bank (ECB) President Christine Lagarde said the European Central Bank needs more time to conclude that inflation has come down to 2 percent and that positive economic developments show that rate cuts are not urgent.

The ECB cut interest rates for the first time in June after the sharpest rate hike in its history, but stopped short of committing to further moves, arguing that the outlook was uncertain for a second rate cut.

Speaking at the ECB Central Banking Forum, Lagarde said, “It will take time for us to collect enough data to be confident that the risks of above-target inflation have passed. The strong labor market means we can take our time to gather new information,” she added.