Lagarde: Can't promise path even after first rate cut

European Central Bank President Christine Lagarde said the bank could not promise further cuts in borrowing costs after a possible first move in June. The bank is not in a position to commit to further rate cuts after a possible first move in June, according to European Central Bank President Christine Lagarde. “We will have a little bit more data by April and a lot more data by June on our policy decisions,” Lagarde reiterated in a speech on Wednesday. Beyond that, Lagarde stressed that the path of monetary policy was uncertain. “Our decisions are data-dependent and will change from meeting to meeting and we will respond to new information as it comes in,” Lagarde said at a conference in Frankfurt. “This means that we cannot commit in advance to a specific path of interest rates even after the first cut,” she said. Policy to be adjusted ‘as seen’ With the timing of the first rate cut increasingly clear, the debate is turning to how quickly the European Central Bank will end its historic tightening campaign and where borrowing costs will ultimately end up. Some officials, such as Bank of Greece President Yannis Stournaras, have suggested a range of moves could be made this year in line with investors’ expectations. Others were less specific. ECB Vice President Luis de Guindos said on Tuesday the ECB would need to adjust policy “as seen.” Lagarde said figures on wages, productivity and corporate profit margins in the coming months would determine when rates could be cut. “If this data shows that there is a sufficient degree of alignment between the underlying path of inflation and our forecast, and assuming that the transmission remains strong, we will be able to move into the reversal phase of our policy cycle and make policy less restrictive,” Lagarde said.