European Central Bank chief says interest rate path in good position, committed to 2% target

ISTANBUL

European Central Bank (ECB) President Christine Lagarde stated on Friday that the current interest rate path is in a "good position" and that the bank remains committed to its medium-term inflation target of 2%.

“Our determination, our commitment, and our duty are to keep price stability, and price stability is around 2% inflation,” Lagarde told German broadcaster ARD.

"We have delivered; inflation is measured at 2%, and we will continue doing so," she noted.

Lagarde stressed that they are committed to the 2% target and will do "whatever it takes" to keep inflation at that level.

“We have a lot of uncertainty and a lot of unpredictability around us at the moment, but on the price front, we will be certain and stable," she said.

When asked about the interest rate path, she emphasized that "we are in a good position now."

She said Europe has enormous potential and emphasized the need to reduce trade barriers and simplify regulations in the eurozone.

Lagarde also considered the possibility of the euro replacing the dollar as the world's largest reserve currency, emphasizing that the euro's value is heavily influenced by the strength of the eurozone's economies and that economic systems must become more efficient and integrated.

The annual inflation in the eurozone matched the ECB's medium-term target of 2% in June, rising from 1.9% in May.

Meanwhile, the central bank cut three key policy rates by 25 basis points in the June meeting in line with market expectations. The bank cut the key rate from 2.25% to 2%.