European Central Bank signals caution on next interest rate move

Published 24/03/2025, 12:20
© Reuters

Investing.com -- The European Central Bank (ECB) has signaled a cautious stance on its next interest rate move, despite inflation trending towards the target range, according to governing council member Gabriel Makhlouf.

Makhlouf, who spoke to reporters in Dublin on Monday, cited "exceptional" global events that could directly impact inflation as a reason for the bank’s careful approach. He emphasized the importance of caution when considering changes to the ECB’s monetary policy, especially when the inflation target has not yet been reached.

"Exceptional events happening around the world could have a direct effect on inflation," Makhlouf stated. He did not provide any specifics regarding these events.

Makhlouf refrained from commenting on the possibility of another rate cut in April, maintaining his cautious outlook on the bank’s future policy moves. His remarks underscore the ECB’s careful navigation in the current global economic environment, as it continues to monitor inflation trends and assess potential impacts of global events on its monetary policy.

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