MNI BRIEF: ECB Discussed 50BP Cut, Agreed 25BP Right -Lagarde
MNI (LONDON) - The European Central Bank Governing Council agreed "completely" that a 25 basis-point cut was the decision right atits December meeting, but some members did propose 50BP, which was discussed, President Christine Lagarde said Thursday.
She said the news on inflation was good, but policymakers were not yet declaring victory on inflation, repeating her comments that "it's not yet mission accomplished".
Pushed on the neutral rate, Lagarde again referred to an ECB paper published in early spring 2024 that looked at the theory behind 'r*' but said there have been no discussions in recent days about determining the level of this metric.
Earlier on Thursday, the ECB cut its three key interest rates by 25 basis points on Thursday, sending the benchmark Deposit Rate to 3.0%, the lowest in over two years, and dropping its previous pledge to keep rates restrictive. (See MNI SOURCES: ECB Closer To Dropping "Restrictive" Language)
ECB chief economist Philip Lane will speak at an MNI Webcast event on Dec 19. Register here.