European Central Bank President Christine Lagarde said policymakers still need clearer evidence on inflation and growth before deciding whether to cut interest rates in July. Her comments came after fresh figures showed the eurozone economy expanded 0.3% in the first quarter, suggesting the recovery remains uneven.

Lagarde’s message points to a central bank that is not yet ready to lock in a shift in policy. While slower inflation could support a cut, officials are also weighing whether growth is strong enough to justify easing financial conditions too quickly.

The latest data adds to a picture of cautious optimism across the bloc. Output is growing, but only modestly, and policymakers remain focused on whether price pressures are truly under control and whether the recovery can hold up through the summer.

Markets will now watch incoming inflation and activity reports closely for clues about the ECB’s next move. Until then, Lagarde’s remarks suggest the bank is keeping its options open rather than signaling a firm July decision.