European Central Bank (ECB) President Christine Lagarde noted that interest rates aren’t hard-locked to a steady path of declines, warning markets that expectations of time-dependent rate cuts isn’t helpful to the ECB’s goals.

Key highlights

Interest rates are not necessarily on a linear-declining path, there might be periods when we hold.

It is possible ECB will hold rates for longer than a single meeting.

Time-dependent guidance on rates not helpful.

I am keen to see the evolution of labour costs and corporate profits.