ECB Close to Achieving Inflation Goals

Peter Kazimir, a member of the European Central Bank (ECB) Governing Council, shared on Tuesday that the ECB is on the verge of reaching its inflation target, with expectations of achieving 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 explained in a blog post on the National Bank of Slovakia's website. Despite this progress, he warned of lingering concerns due to the rapidly changing and often chaotic economic landscape.

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 maintaining price stability in Europe. "We're once again navigating through an era marked by abrupt changes and economic shocks, filled with uncertainty and tension," he remarked.