ECB expects annual inflation to stay around 2% target in coming months

ISTANBUL

European Central Bank (ECB) President Christine Lagarde stated Wednesday that core inflation indicators are in line with the central bank's target and that inflation will remain close to the bank's 2% target in the coming months.

"Risks to the outlook continue to be two-sided, while uncertainty remains higher than usual owing to volatile global trade policies," Lagarde said at the European Parliament (EP) Economic and Financial Affairs Committee meeting in Brussels.

She warned that, while the impact of high tariffs on Eurozone exports and manufacturing investments persists, the global environment is likely to remain negative.

Lagarde also emphasized that fixing public finances is not the central bank's job, stating that they are continuing their data-driven, meeting-by-meeting approach to determining the appropriate monetary policy stance.

She added that the Eurosystem staff projections, which will be released on Dec. 18, will provide more insight into growth and inflation expectations.

- ECB expected to keep rates unchanged

The ECB's Monetary Policy Committee is set to meet on Dec. 18, when it is expected to keep the policy rate steady at 2%.

The central bank, having cut the deposit rate in the Eurozone eight times since June 2024, paused the reductions in July, September, and October.

Annual inflation in the Eurozone, which was at 2.1% in October, rose to 2.2% in November, above the ECB's 2% medium-term target.