The ECB is likely to continue to lower its key interest rate as the threat of U.S. tariffs clouds already weak growth prospects, President Christine Lagarde said Monday in a speech.

The European Central Bank will cut interest rates further if inflation continues to ease towards its 2% target as restricting economic growth is no longer necessary, ECB President Christine Lagarde said today.

Christine Lagarde’s comments at the press conference suggest the European Central Bank is on its way towards neutral interest rates, but there is no clear consensus over the right pace just yet The ECB cut interest rates by 25bp,