ECB’s Lagarde says inflation more likely to ease but risks both ways

FRANKFURT (Reuters) – Euro zone inflation is likely to decline further and the European Central Bank may cut interest rates if its long-standing price growth criteria are met, ECB President Christine Lagarde said on Friday.

“At the same time, the Governing Council is not pre-committing to a particular rate path,” Lagarde said, repeating the bank’s most recent guidance.

“Risks to the inflation outlook are two-sided,” she said. “Upside risks include heightened geopolitical tensions, as well as higher wage growth and more resilient profit margins than anticipated.”

(Reporting by Balazs Koranyi; Editing by Kevin Liffey)