ECB warns inflation could rise again as rate reductions ruled out for now

Despite the rapid fall in inflation to 2.9% across the eurozone last month, Christine Lagarde warned that swift disinflation may end soon and price growth could even accelerate

ECB president Christine Lagarde said there will be reductions in interest rates for at least 'the next couple of quarters'. Picture: Michael Probst/AP

Eurozone inflation could tick up in the coming months but European Central Bank (ECB) interest rates held at their current level at least for several quarters could still get price growth back to 2%, the president of the ECB has said.

Last month, the ECB decided to pause interest rate increases for the time being after 10 straight hikes.