Tariffs add to the risks. The ECB already thought a 20 per cent tariff with EU retaliation would keep inflation below 2 per cent in 2027 rather than reaching target as the bank currently expects.

The ECB has halved its policy rate from 4% to 2% in the space of just one year after taming a surge in prices that followed the end of the COVID-19 pandemic and Russia's invasion of Ukraine.

Conversations with ECB policymakers suggest the euro zone's central bank will largely endorse its past largesse, making only minor changes to a strategy document that was last updated four years ...

FRANKFURT/MADRID (Reuters) -The European Central Bank will test banks' resilience to geopolitical turmoil next year, chief ECB supervisor Claudia Buch said on Tuesday, as part of a growing focus ...

Last month, the ECB predicted inflation will settle at 2% in 2027 after averaging just 1.6% next year. Analysts see risks to June’s projections as largely balanced.

Inflation at the ECB’s 2% target encourages a wait-and-see approach By Jamie Chisholm Follow Last Updated: July 24, 2025 at 1:51 a.m. ET First Published: July 23, 2025 at 10:29 a.m. ET ...

ECB President Christine Lagarde said she and her colleagues are now in a “wait-and-see” mode, with inflation at the 2% goal and the economy performing in line with or better than expectations.

This paper reviews the trade-offs involved in the choice of the ECB’s monetary policy operational framework. As long as the ECB’s supply of reserves remains well in excess of the banks’ demand, the ...

On March 13, an ECB working paper showed that when asked to allocate 10,000 euros (about $10,800) on various assets, respondents only allocated a small portion to the digital euro, having little ...

Central banks, particularly the Fed and ECB, have been at the forefront, navigating these turbulent times through adaptive and often unconventional monetary policies.