ECB's Inflation Target Within Reach

Peter Kazimir, a member of the European Central Bank (ECB) Governing Council announced that the ECB is on the verge of achieving its inflation target. This milestone is expected to be reached in the coming months, marking a significant step forward in the bank's monetary policy.

Monetary Policy Shifts to Neutral Zone

"A series of interest rate cuts have transitioned us into what is known as the neutral zone," Kazimir explained in a blog post. This shift indicates that the ECB's monetary policy is no longer restrictive, thereby not hindering economic growth. Despite this progress, Kazimir warned of the challenges posed by the current "chaotic environment."

Addressing Global Economic Challenges

Kazimir also touched on the importance of a measured response to the US reciprocal tariffs, stressing the need for Europe to maintain its focus on price stability. "We are once again in an era of rapid changes and shocks, with the economy facing significant uncertainty and tension," he remarked.