ECB's Inflation Target Within Reach

European Central Bank (ECB) Governing Council member Peter Kazimir announced on Tuesday that the ECB is on the verge of achieving its inflation target, with confidence in reaching this milestone in the coming months.

Monetary Policy Shifts to Neutral Zone

"A series of interest rate cuts has transitioned us into the neutral zone, indicating that the ECB's monetary policy is no longer restrictive and does not hinder economic growth," Kazimir shared in a blog post on the National Bank of Slovakia's website. However, he also warned of lingering concerns due to the rapidly changing and often "chaotic environment."

Call for Moderate Response to US Tariffs

Kazimir stressed the importance of a measured approach to the US reciprocal tariffs, underlining the ECB's commitment to price stability. "We are once again navigating through an era of sudden changes and shocks, marked by significant uncertainty and economic tension," he remarked.