ECB Pauses Rate Hikes, Signals Caution
Response to Slowing Inflation
The European Central Bank (ECB) announced on Thursday that it has decided to pause its cycle of rate hikes, citing a slowdown in inflation. The decision was made at a meeting of the ECB's Governing Council held in Frankfurt, Germany.
Lagarde's Comments
ECB President Christine Lagarde said at a press conference following the meeting that the central bank would take a "gradual and cautious" approach to monetary policy. She noted that inflation in the eurozone had fallen to 8.5% in January, from 9.2% in December. However, she warned that inflation remained "far too high" and that the ECB would continue to monitor the situation closely.
Comments