ECB's Makhlouf says they are focused on delivering the inflation target; if shock takes inflation off target but not persistently, ECB should be measured in response

The ECB's Makhlouf emphasizes the need for a measured approach to inflation management, suggesting that temporary shocks shouldn't prompt aggressive policy changes.

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ECB's Makhlouf says they are focused on delivering the inflation target; if shock takes inflation off target but not persistently, ECB should be measured in response

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  • Not yet seeing changes in consumer behaviour from higher inflation. 
Context

His observation about consumer behavior indicating stability could imply that the central bank remains comfortable with the current inflation trajectory, potentially easing market concerns about immediate rate hikes. This stance may support the euro and dampen pressure on fixed income markets in the near term.

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