Christine Lagarde has vowed to slash interest rates in the euro zone amid signs the economy is continuing to slow.
Saying that the ‘darkest days’ of high inflation are ‘behind us’, the European Central Bank chief said: ‘The direction of travel is clear and interest rates are expected to come down. ‘
The ECB last week cut interest rates for the fourth time this year to 3 percent in a bid to jump-start the eurozone economy.
Data company S&P Global said yesterday that the index of purchasing managers’ performance in the region reached 49.5 this month – below the 50 mark that separates growth and decline.
Growth spurt: European Central Bank chief Christine Lagarde (pictured) has vowed to keep cutting interest rates in the euro zone
That was higher than last month’s score of 48.3 – better than economists had expected – but still a sign that the eurozone economy is slowing.
The figures also showed companies cutting jobs at the fastest pace in four years as they responded to the decline in employment.
The recession reflects woes in Germany and France, the euro zone’s two biggest economies, which shrank while the rest of the bloc grew.
At the heart of Germany’s woes is the collapse of its powerful industrial sector in the face of the loss of Russian power and declining demand from China.
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