The European Central Bank (ECB) is an independent institution not subject to any political pressure, its President Christine Lagarde said on Friday, rebuffing Italian calls for bigger interest rate cuts.
Two Italian government ministers had criticized the ECB on Thursday as the Frankfurt-based euro zone central bank cut its deposit rate by 25 basis points to 3.50%, and accused it of a lack of courage.
"The European Central Bank is an independent institution, it's very clearly stated in the treaties," Lagarde said at an informal meeting of EU economy ministers in Budapest.
"We are not subject to political pressure of any sort," she added, according to Reuters.
Italy, with the highest borrowing costs in the euro zone and the bloc's second highest public debt as a proportion of national output, has much to gain from a steep fall in ECB rates.
Foreign Minister Antonio Tajani, one of the members of Prime Minister Giorgia Meloni's government who spoke out against the ECB, also called for the bank's founding treaty to be reformed.
"Today the European Central Bank is only concerned with fighting inflation, (but) it is not enough, we need a central bank that can manage the currency to promote growth," Tajani said.
Speaking on Thursday, Lagarde suggested to reporters that the bar for another cut next month was relatively high, highlighting that policymakers would be unlikely to have enough data to determine whether further easing was appropriate.
