European Central Bank President Christine Lagarde stated that reaching the inflation target of 2 percent is close, considering that financial stability is a prerequisite for price stability.
Lagarde's remarks came in an interview published on Saturday with the Chinese news agency Xinhua, which the European Central Bank reposted on its official website.
And she confirmed, 'We are close to achieving the medium-term inflation target of 2 percent, which we have set as a benchmark for price stability.'
Lagarde: The European Central Bank is ready to intervene to ensure financial stability
Upcoming inflation forecasts
The European Central Bank had lowered its inflation forecasts earlier this month, indicating that it expects the inflation rate in the euro area, consisting of 20 countries, to be around 2 percent by 2025, and 1.6 percent for the next year.
Progress in the digital currency project
Lagarde also indicated that the bank's efforts to launch a European digital currency have reached an advanced stage, adding that the project is ready to move forward if it receives support from European legislators.
European Central Bank Governing Council member and President of the German Central Bank, Joachim Nagel, stated that the bank is no longer relying on a restrictive monetary policy, and that it is now possible to take a wait-and-see approach to new decisions regarding interest rates.
The European Central Bank had cut interest rates on Thursday for the eighth time in a year, amid signs of stabilizing inflation returning to the targeted level of 2 percent, and despite this cut, the bank hinted at a possible temporary halt in interest rate cuts next month.
