Europe must “be prepared” for potential trade tariffs from U.S. President Donald Trump, the president of the European Central Bank Christine Lagarde told CNBC at the World Economic Forum in Davos on Wednesday.

European Central Bank President Christine Lagarde discusses monetary policy at the World Economic Forum in Davos.

The European Central Bank isn’t lowering interest rates too slowly and will maintain its measured approach to easing monetary policy, President Christine Lagarde told CNBC.Most Read from BloombergTexa

The European Central Bank's President Christine Lagarde can move financial markets with a frown, while her predecessor, Mario Draghi, used a smile to reinforce his message, a new study has found.

The European Central Bank (ECB) is sticking to its guns on reducing inflation to 2% this year, even as Donald Trump’s return to the White House raises new

Speaking at the World Economic Forum in Davos, the ECB president said Europe "must act on the offensive and not just on the defensive, this is a wake-up call. "Strong confidence that inflation will fa

This means that the ECB will continue to cut rates. Bringing them at least to the upper end of estimates for the neutral interest rate, i.e. 2.5%, seems like a no-brainer. However, if the eurozone economy remains weaker than the ECB’s December forecasts predict, cutting rates further will become unavoidable.

It's a big week ahead as the U.S. Federal Reserve, European Central Bank and Bank of Canada hold their first meetings of 2025.

EUR/GBP trades in negative territory around 0.8450 in Thursday’s early European session.

Plans by the European Central Bank to push ahead with interest-rate cuts are withstanding the early jolts in US economic policy driven by Donald Trump’s return to the White House.Most Read from Bloomb

AUD/USD stays sidelined below the 0.6300 mark in the Asian session on Thursday amid uncertainty over US President Donald Trump's tariff plans. The Aussie shrugs off a risk-rally in Chinese stocks on fresh support measures as the US Dollar holds ground ahead of top-tier US data releases.

Christine Lagarde said Europe needed to get better at keeping its talent and savings at home, adding that the new US administration’s decision to freeze some funding for former president Joe Biden’s Inflation Reduction Act might remove one of the incentives to invest in the US.