European Central Bank President Christine Lagarde speaks on a panel at the World Economic Forum in Davos, Switzerland.

Following is the text of European Central Bank President Christine Lagarde's statement after the bank's policy meeting on Thursday:

ECB President Christine Lagarde has firmly stated that Bitcoin will not be included in EU reserves due to concerns over regulatory risks.

The Fed will likely be on a more hawkish path, so significant divergence from the ECB could risk flight of capital towards the Dollar.”

Christine Lagarde said Europe needed to get better at keeping its talent and savings at home, adding that the new US administration’s decision to freeze some funding for former president Joe Biden’s Inflation Reduction Act might remove one of the incentives to invest in the US.

The Czech Republic does not use the euro but the country is in the EU. The CNB did not comment on the particular assets it's considering. The proposal was put forward by CNB Governor Aleš Michl, who has said his interest was in possibly adding bitcoin to bank's balance sheet.

On Jan. 30, the European Central Bank (ECB) decided to cut its three key interest rates by 25 basis points. This brings the deposit facility rate to 2.75%,

Europe must "be prepared" and anticipate the potential trade tariffs of newly inaugurated U.S. President Donald Trump, European Central Bank President Christine Lagarde told CNBC on Wednesday.

At the World Economic Forum, President Trump's return to the White House overshadowed traditional talk on climate change, trade and development.

"It is hard to know what to expect from the US today, but there is a chance that 1.0400/0435 caps any surprise EUR/USD rally on a softer-than-expected tariff story. And 1.0225 could be the extent of any sell-off should the tariff story come in hot."

The head of the IMF, Kristalina Georgieva, was speaking at a panel in Davos alongside ECB President, Christine Lagarde.

Despite US President Donald Trump's sabre-rattling, the European Central Bank is set to press on with interest rate cuts Thursday as officials increasingly voice confidence that the fight against inflation is on track.