The European Central Bank can continue lowering borrowing costs as confidence in inflation moderating to the 2% target rises, Executive Board Member Isabel Schnabel said.

The European Central Bank will cut interest rates further if inflation continues to ease towards its 2% target as restricting economic growth is no longer necessary, ECB President Christine Lagarde said on Monday.

The ECB is likely to continue to lower its key interest rate as the threat of U.S. tariffs clouds already weak growth prospects, President Christine Lagarde said in a speech Monday.