ECB's Makhlouf Discusses Inflation Outlook and Monetary Policy
Gabriel Makhlouf, a member of the European Central Bank’s Governing Council, discussed inflation, economic conditions, and interest rates amid ongoing energy shocks. He noted that while there are no immediate signs of second-round effects from rising oil and gas prices, uncertainties persist due to conflicts in Iran and Ukraine. Makhlouf emphasized that every ECB meeting is a live decision based on current data rather than following a predetermined path. He also addressed market expectations for potential rate hikes over the next year but declined to confirm or deny them, stating the ECB remains committed to its 2% inflation target without commenting directly on market forecasts. Makhlouf mentioned that while there is active debate within the Governing Council, current rates are still considered neutral and not yet restrictive. The remarks come as energy prices remain high, with oil above $100 per barrel and European gas at multi-year highs, raising concerns about inflationary pressures.
Topics: economic outlook energy prices inflation interest rates