European Central Bank President Christine Lagarde stated that the euro zone economy is handling U.S. tariffs better than anticipated, keeping inflation risks contained. The ECB has maintained interest rates since June, indicating no rush for further policy adjustments. Financial investors have ruled out rate cuts, with December as the earliest for potential economic support discussions. Lagarde emphasized that trade shocks have not led to new inflation pressures, allowing the ECB to respond effectively if needed. Trade tensions have had a milder impact than expected, thanks to government spending boosts and a stable euro value. Lagarde credited a quicker-than-expected trade deal and increased government defense spending for mitigating growth uncertainties.

Read more at Yahoo Finance: Euro zone inflation risk quite contained, Lagarde says