ECB's Progress Towards Inflation Target

Peter Kazimir, a member of the European Central Bank (ECB) Governing Council, announced on Tuesday that the ECB is on the verge of achieving its inflation target. He expressed optimism that this milestone would be reached in the coming months.

Monetary Policy Shifts to Neutral Zone

According to Kazimir, recent adjustments in key interest rates have transitioned the ECB's monetary policy into a neutral zone. This shift signifies that the policy is no longer restrictive and does not impede economic growth. Kazimir shared these insights in a blog post on the National Bank of Slovakia's website.

Challenges in a Chaotic Economic Environment

Despite the progress, Kazimir warned of persistent challenges due to the rapidly changing and often chaotic economic landscape. He stressed the importance of a measured approach to external pressures, such as US reciprocal tariffs, to maintain price stability in Europe.

Navigating Uncertainty and Tension

"We are once again in an environment marked by abrupt changes and shocks," Kazimir remarked. He highlighted the significant uncertainty and unpredictability facing the economy, underscoring the need for cautious navigation through these turbulent times.