Lagarde: We will continue to lower interest rates if upcoming data shows a slowdown in inflation.

On Monday, European Central Bank Governor Christine Lagarde delivered a speech at the annual economic conference titled "Pillars of Resilience Amid Global Geopolitical Transformations." During her speech, Lagarde indicated that the European Central Bank will continue to lower interest rates further if upcoming data confirms that inflation is progressing toward the bank's target of 2%.

The key statements from Lagarde's speech were:

• The European Central Bank's previous bias to keep interest rates at sufficiently restrictive levels is no longer justified at this time.
• The European Central Bank is close to achieving its inflation target.
• The momentum of inflation in the services sector has declined sharply in recent times.
• The economic growth in the euro area is likely to be affected by protectionist measures that may be taken by the newly elected U.S. government through the imposition of tariffs.