European Central Bank President Christine Lagarde signaled that the bank may lower interest rates at its July meeting, pointing to weaker inflation pressures across the eurozone. Her remarks add to expectations that policymakers could soon ease borrowing costs after a long tightening cycle.

The ECB has spent the past two years battling high inflation with a series of rate increases. But as price growth has cooled, pressure has grown on officials to shift toward supporting slower economic activity and easing financing conditions for households and businesses.

Lagarde did not announce a decision, and any move will still depend on incoming data before the July meeting. Analysts say the ECB will likely weigh inflation trends, wage growth and broader economic conditions before deciding whether to cut rates.

A reduction would mark a notable change in the central bank’s stance and could influence lending, mortgage costs and investment across the currency bloc. Markets are now watching closely for further signals from ECB officials in the weeks ahead.

Eurozone inflation

Lagarde signals ECB could cut rates in July as inflation cools