The European Central Bank will continue to lower its key interest rate over coming meetings, but the pace of that decline has yet to be determined, President Christine Lagarde said Tuesday.The ECB last week lowered its key interest rate for the third meeting out of four,

WASHINGTON (Reuters) -Euro zone inflation is easing and may fall back to 2% quicker than previously thought, supporting the case for further European Central Bank rate cuts, ECB President Christine Lagarde said on Tuesday.

A faster-than-expected retreat in euro-zone inflation will allow the European Central Bank to cut interest rates again before too long, according to Governing Council member Robert Holzmann.

The ECB cut rates again today. Christine Lagarde's comments suggest the Bank is trying to get interest rates down to neutral levels as soon as possible. Read more

Stournaras, the governor of the Greek central bank, said inflation could be on the path to meet ECB's 2% target in the first half of 2025, boosting the case for policymakers to cut "highly restrictive" interest rates faster than previously expected, the FT reported.

Inflation in the euro zone has slowed to converge with the European Central Bank's 2% target and the risk now is undershooting the goal, which could stifle growth, ECB policymaker Mario Centeno told an event in Washington on Tuesday.