ECB’s Lagarde: Don’t Foresee Any Significant Change in Inflation; in a Good Place

3 October 2025

By David Barwick – FRANKFURT (Econostream) – European Central Bank President Christine Lagarde on Friday said that euro area inflation was not presently expected to change much in any direction and that the ECB would do what was needed to stay in its current “good place.”

In an interview with Finnish broadcaster MTV OY, Lagarde said that it was too soon to “pass final judgment” concerning the redirection of Chinese exports to Europe. “We’re really talking about the deficit of the European Union vis-à-vis China; we’re not talking about additional exports from China, necessarily,” she said.

Increased Chinese imports were nevertheless one of various uncertainties, she said, noting also the need to reconfigure supply chains and the necessity of higher defense spending.

“But, you know, if I look at what we should anticipate – what is known – we don’t expect significant movement up or down in relation to inflation,” she said.

“There is no pre-set pace” at which interest rates would be adjusted, she said. “We are currently in a good place. We will do what it takes to stay in that good place.”

“We have to remain agile and attentive to numbers,” she continued. “We will be data-dependent. We will decide one meeting after the other to make sure that we stay in that good place.”

According to Lagarde, “the euro area in general has shown more resilience than what we have anticipated.” Still, growth had not yet reached potential and “still has a way to go,” she said.

“We are in a good place, and we have to make sure that we stay in that good place,” she reiterated.

Lagarde insisted again that she would serve out her current term as scheduled to the end of October 2027.

“I see no reason why I would not,” she said. “I have to, you know, finish the job, and my plan is to accomplish the mission and finish the job, yes.”

It would require currently “unknown circumstances” for this not to be the case, she said.