European Central Bank President Christine Lagarde stated that the eurozone economy is “in good shape,” but she emphasized that policy is not “set in stone.” On Thursday, the ECB kept interest rates unchanged.
Following the decision, Lagarde said investment is “stronger than expected,” largely driven by developments in artificial intelligence, including investments in computing power, telecommunications, and intangible assets. She noted that both large corporations and small and medium-sized enterprises have increased their investments.
Lagarde also stated that “exports are exceeding expectations,” even though the ECB anticipates that trade will become a “drag on economic growth” as tariffs rise. She pointed out that the central bank will continue to assess whether the recent economic improvements reflect a lasting shift in growth momentum or a temporary stimulus.
European Central Bank
The European Central Bank (ECB) is the central bank for the euro currency and the core institution of the Eurosystem, responsible for monetary policy within the euro area. It was established in 1998, following the Treaty of Amsterdam, to ensure price stability and oversee the financial system ahead of the euro’s physical introduction in 1999. Its headquarters are located in Frankfurt, Germany, in a distinctive skyscraper known as the Eurotower and, since 2014, in the new Ostend district skyscraper.
eurozone
The eurozone is an economic and monetary union of 20 European Union member states that have adopted the euro (€) as their common currency. It was officially established in 1999, with the euro first introduced for electronic payments, followed by physical banknotes and coins in 2002, to foster deeper economic integration and stability within Europe.
