Milan, February 13 (LaPresse) – "The Governing Council" of the ECB "is determined to ensure that inflation durably stabilizes at its 2 percent medium-term target. To define the appropriate monetary policy stance, it will follow a data-driven approach, whereby decisions are made on a case-by-case basis at each meeting. In particular, interest rate decisions will be based on an assessment of inflation prospects in light of the most recent economic and financial data, underlying inflation trends, and the strength of monetary policy transmission. The Governing Council does not intend to commit to a specific rate path."
This is stated in the ECB’s Economic Bulletin. "The disinflation process is well underway. Inflation has continued to evolve largely in line with the macroeconomic projections for the euro area made in December 2024 by Eurosystem experts, and over the course of 2025, it is expected to return to the 2 percent medium-term target pursued by the ECB’s Governing Council," adds the ECB.
"The risks to economic growth remain tilted to the downside. Increased frictions in international trade could weigh on euro area growth by slowing exports and weakening the global economy. A decline in confidence could prevent consumption and investment from recovering at the expected pace. This could be exacerbated by geopolitical risks, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, which could cause disruptions in energy supplies and further strain international trade," the bulletin concludes.
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