Lagarde Says ECB Expects to 'Lower Interest Rates Further'

The video discusses the return of inflation to target levels by 2025, with reduced uncertainty in projections. The current restrictive policy stance may lead to lower interest rates if data aligns with expectations. The future policy orientation is shifting from a restrictive bias to an appropriate stance, reflecting changes in the macroeconomic landscape. The recent Monetary Policy Statement by the Governing Council highlights this shift, moving away from coded language to a more transparent approach.

What has been the trend in inflation forecasts since September of last year?

How has the uncertainty around inflation projections changed recently?

What is the current policy stance regarding interest rates?

What does the speaker indicate about the future orientation of monetary policy?

What change in communication regarding policy stance is mentioned?