European Central Bank: Inflation nearing the target level amid ongoing economic challenges.

Christine Lagarde, President of the European Central Bank, announced that the inflation rate in the Eurozone is approaching the targeted level of 2%, confirming that "we are approaching the medium-term inflation target of 2% that we have set for price stability."

This came during an interview with Xinhua News Agency, published on the European Central Bank's website on Saturday, June 14th.

Lagarde pointed out that financial stability is a fundamental condition for achieving price stability, following the European Central Bank's decision to cut the main interest rates by 0.25 percentage points at the beginning of this June in response to inflation falling to 2%. However, she warned that the economy is facing "headwinds" threatening the recovery path.

Lagarde added that the quantitative easing program, which saw 8 interest rate cuts totaling 200 basis points over the past year, "is nearing its end." She also revealed the bank's review of its inflation expectations, expecting the inflation rate in the Eurozone (20 countries) to reach 2% this year before dropping to 1.6% next year.

In addition to monetary policy, the President of the European Central Bank pointed to the progress of the central bank digital currency project, stating that the proposal "is ready for implementation if supported by legislators."

Regarding global economic challenges, Lagarde warned of the impact of tariffs, explaining that "the level of uncertainty resulting from threats to impose tariffs weakens investment," adding: "It pushes all institutions to lower their growth expectations in the global economy. In the United States, China, and Europe, we are currently facing a losing situation for everyone."

This comes at a time when the European Central Bank continues to balance its policies between supporting economic growth and controlling inflation amid escalating global slowdown fears.