On the 25th, European Central Bank President Lagarde delivered a speech at a hearing of the European Parliament's Economic and Monetary Affairs Committee, stating that economic activity in the eurozone generally stagnated in the first half of 2023, and recent indicators indicate further weakness in the third quarter. Lagarde said that the decline in export demand in the eurozone and the tightening of the financing environment are suppressing economic growth. The service industry is also weakening, and job creation in the service industry is slowing down. When it comes to inflation, Lagarde said that the overall inflation rate in the eurozone continues to decline from its peak in October last year, but the current price pressure is still significant and will remain at an excessively high level for a long time. It is expected that the inflation pressure in the eurozone will ease in the next two years, from 5.6% in 2023 to 3.2% in 2024, and to 2.1% in 2025. She said that according to the latest assessment, the European Central Bank believes that policy interest rates have reached a certain level, and as long as they are maintained for a sufficient period of time, they can make a significant contribution to the timely return of inflation rates to the set targets. The European Central Bank will evaluate the inflation outlook based on economic and financial data, potential inflation dynamics, and monetary policy transmission strength, and make decisions accordingly. Lagarde also stated that governments around the world should continue to reduce their energy related support measures to avoid pushing up medium-term inflationary pressures. At the same time, fiscal policy should aim to increase the productivity of the eurozone economy and gradually reduce high public debt. She said that a sound economic governance framework is in the common interest, and therefore an agreement on EU fiscal framework reform should be reached before the end of this year. On September 14th, Lagarde stated that the eurozone is currently experiencing a "difficult period". The European Central Bank has lowered its economic growth forecast for the eurozone in 2023 to 0.7%, while adjusting its growth forecasts for 2024 and 2025 to 1.0% and 1.5%, respectively. Since July last year, the European Central Bank has raised interest rates 10 times in a row, totaling 450 basis points. Analysts point out that due to the poor growth prospects of the eurozone economy, the European Central Bank's current interest rate hike cycle may be nearing its end. (New News Agency)