ECB Cautious on Rate Cuts Despite Lowered Forecasts, Lagarde Urges Patience Before Policy Changes
• ECB keeps interest rates unchanged, cuts growth and inflation forecasts for 2024-2026 • Markets interpret lowered projections as sign of imminent rate cuts, but Lagarde urges caution • Lagarde wants more evidence of declining inflation before considering policy changes • Dismisses aligning with Fed, says rate cuts not on agenda at current meeting • European stocks at record highs as investors bet on future rate cuts, but overbought levels signal caution