European Central Bank President Christine Lagarde said policymakers are prepared to ease monetary policy further if incoming data on inflation and growth call for it, signaling that more rate cuts remain possible. Her comments came as the eurozone economy shows fresh signs of losing momentum.

The ECB has been trying to balance two goals: keeping inflation under control while avoiding unnecessary damage to already fragile growth. Lagarde’s remarks suggest the central bank is not locking itself into a fixed path and will respond to economic conditions as they develop.

Recent indicators have pointed to a weaker outlook across parts of the currency bloc, with businesses and households still facing elevated borrowing costs. That has kept pressure on the ECB to support activity if price pressures continue to ease.

Markets will now watch upcoming inflation releases, growth figures, and central bank statements for signs of how quickly the ECB may move. For now, Lagarde’s message was clear: if the data deteriorate, the option to cut again remains on the table.