European Central Bank President Christine Lagarde said the central bank is unlikely to lower interest rates at its July meeting after fresh inflation data showed price pressures remain above the ECB’s comfort zone. Her comments suggest policymakers are preparing to hold borrowing costs steady as they assess whether inflation is cooling enough to justify easing.

The remarks come after this week’s inflation figures reinforced concerns that progress toward the ECB’s target may still be uneven across the eurozone. While markets have been watching for signs of a possible cut, Lagarde indicated officials are not ready to move yet.

The ECB has been balancing the risk of keeping rates high for too long against the danger of easing too quickly and reigniting inflation. For households and businesses across the region, the bank’s next decision will shape borrowing costs, mortgage payments, and broader economic sentiment in the months ahead.