European Central Bank President Christine Lagarde said a rate cut could be considered in July after fresh data showed inflation easing across the eurozone. Her remarks point to growing confidence at the ECB that price pressures are continuing to cool after an extended tightening cycle.

The comments came as policymakers weigh whether the region’s economy can tolerate lower borrowing costs without reigniting inflation. Markets have been watching closely for signs of a shift in the central bank’s stance, especially after months of slower growth and signs that price increases are moving closer to the ECB’s target.

A move in July would mark another step in the bank’s effort to balance inflation control with support for a fragile economic recovery. The final decision will depend on incoming data in the weeks ahead, including how wage growth, services prices and broader demand evolve.

For households and businesses across the eurozone, any rate cut would ease pressure on loans and financing costs. But officials are expected to remain cautious, signaling that further steps will depend on whether the disinflation trend continues.