Lagarde Offers No Help on Rate Cuts as ECB Waits for Answers.

The European Central Bank (ECB) has lowered its key deposit rate by a quarter-point for the second time this year, but President Christine Lagarde did not provide any guidance on future rate cuts. The ECB is waiting for data on the state of the economy and its impact on inflation before making any decisions. Projections for euro-zone output have been downgraded, indicating a worsening economic backdrop. While some analysts expect further rate cuts, others believe that rising salaries and a souring economy could lead to sub-par inflation and require more monetary loosening. The Federal Reserve is also expected to ease policy, which may influence the ECB's decisions. [Extracted from the article]