European Central Bank President Christine Lagarde stated on Monday that interest rates are likely to decrease further if data continue to confirm the disinflation trend.

"The current policy stance is restrictive. But if the incoming data continue to confirm our baseline, the direction of travel is clear, and we expect to lower interest rates further," she said in a speech at the Bank of Lithuania's Annual Economics Conference. During her intervention, she also warned that rising geopolitical pressures could cause energy prices and freight costs to go higher soon.

Nevertheless, on a more positive note, Lagarde concluded that the bloc is now "at a stage where the darkest days of winter look behind us," giving the possibility to "start to look forward instead."