European Central Bank President Christine Lagarde said the bank will move carefully on any further interest-rate cuts, pointing to early signs that growth across the eurozone is stabilizing. Her comments suggest policymakers are not ready to accelerate easing even as inflation and growth risks continue to shift.

Lagarde’s remarks come as the ECB weighs whether recent economic data justify more support for the bloc’s economy. After a period of sluggish activity, some indicators now point to a modest recovery, but officials remain wary of acting too aggressively before the outlook becomes clearer.

The bank has already lowered borrowing costs in recent months, and markets are watching closely for clues about the pace of future decisions. Lagarde’s message signals that the ECB is likely to stay data-dependent, balancing the need to support growth with the risk of cutting rates too quickly.

For households and businesses across the eurozone, the next moves on rates will shape mortgage costs, lending conditions, and investment plans. The ECB’s latest caution underscores how uncertain the recovery remains, even as policymakers see tentative progress in the region’s economy.