ECB Stresses Policy Flexibility Amid Global Uncertainties
European Central Bank officials are maintaining a stance of full monetary policy optionality as global economic uncertainties persist. Martin Kocher, Austria's central bank governor and ECB Governing Council member, emphasized the need for rapid response capabilities during a Bloomberg Television interview. "We've seen how quickly conditions can change," Kocher noted, referencing recent trade tensions.
The Frankfurt-based institution has held rates steady since June, with inflation hovering NEAR its 2% target. ECB projections suggest price growth may dip slightly below this threshold before rebounding. Market participants anticipate continued policy stability in the near term.
While the growth outlook remains positive, policymakers highlighted risks including trade disruptions and geopolitical events. Last week's meeting minutes revealed a consensus around maintaining maximum flexibility to address potential economic shocks.
