European Central Bank (ECB) Governing Council member Peter Kazimir stated on Tuesday that the European Central Bank (ECB) is close to hitting its inflation target and expressed confidence that the achievement will come in the next months.
"A series of cuts in key interest rates has moved us into the so-called neutral zone. This means that the European Central Bank's monetary policy stance is no longer restrictive and does not hamper economic activity," as noted by Kazimir in a blog post on the National Bank of Slovakia's website. However, the official also cautioned that some concerns remain due to the fast-paced and often "chaotic environment."
Kazimir emphasized the need for a moderate response to the US reciprocal tariffs, highlighting the importance of achieving Europe's goal of price stability. "Once again, we are facing an environment characterized by sudden changes and shocks. There is significant uncertainty, unpredictability, and tension in the economy," he said.
