ECB Confident About Lowering Inflation Despite Trump’s Return

The European Central Bank (ECB) remains confident in its ability to lower inflation, even with the potential return of Donald Trump to the political scene. Governing Council member Olli Rehn, speaking on January 22, indicated that monetary policy restrictions could be lifted by mid-year, with inflation stabilizing as anticipated. Rehn highlighted that while wars and trade policies are causing significant economic uncertainty, global economic growth has gradually strengthened in 2024 and is expected to continue moderately in 2025. The ECB is closely monitoring inflation trends, CORE inflation dynamics, and the effectiveness of its policies. Geopolitical tensions and trade disruptions remain major risks, with the threat of a trade war potentially leading to rising prices.