A member of the European Central Bank’s Governing Council said on Wednesday the institution should not hesitate to raise interest rates further if inflation trends deteriorate, underscoring the ECB’s data-dependent approach to monetary policy.
Gabriel Makhlouf, speaking to the Financial Times, emphasized that the ECB must remain ready to act if price pressures show signs of reaccelerating. His remarks come ahead of the central bank’s next policy decision, scheduled for next week.
Makhlouf indicated that the upcoming rate decision will not come as a surprise to markets, reflecting the ECB’s ongoing communication strategy to manage expectations. He also projected that the central bank would slightly upgrade its eurozone growth forecast for 2026, suggesting a modest improvement in the economic outlook.
The comments follow a period of heightened uncertainty for the ECB, as policymakers balance efforts to control inflation against concerns over growth momentum in the euro area. Makhlouf’s stance aligns with recent signals from other Governing Council members, who have stressed the need for flexibility in policy settings.
The interview was published by the Financial Times on Wednesday, with Makhlouf’s remarks framed as part of a broader discussion on the ECB’s inflation strategy. The ECB’s headquarters in Frankfurt, captured in a photo dated March 6, 2025, serves as a backdrop to the policy debate.
