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Home > Finance > ECB must be cautious in acting preemptively against uncertainty, Kocher says

ECB must be cautious in acting preemptively against uncertainty, Kocher says

Published by Global Banking and Finance Review

Posted on January 23, 2026

2 min read

Last updated: January 23, 2026

ECB must be cautious in acting preemptively against uncertainty, Kocher says - Finance news and analysis from Global Banking & Finance Review

Tags:monetary policy European Central Bank financial markets economic growth

Quick Summary

Martin Kocher of the ECB advises caution in policy changes amid rising geopolitical uncertainty, stressing the importance of not acting prematurely.

ECB's Kocher Advocates Caution in Preemptive Policy Adjustments

Caution in ECB Policy Adjustments

FRANKFURT, Jan 23 (Reuters) - The European Central Bank must be cautious in adjusting policy preemptively to mitigate uncertainty, Austrian central bank chief Martin Kocher told German media outlet Platow in an interview published on Friday.

Geopolitical uncertainty has increased sharply this month, partly on threats by U.S. President Donald Trump that he would take over Greenland and impose punitive tariffs on nations not going along with his plan.

But Kocher said he would be cautious in acting before risks actually materialised, especially if inflation risk were not clearly skewed in one particular direction.

Geopolitical Uncertainty

"I would be cautious," Kocher said. "Some risks can be addressed in advance, but many cannot, because otherwise one commits to a course of action too early and communication becomes difficult."

Current Market Expectations

He added risks had "shifted slightly to the positive" in the past six months, with slightly stronger growth expectations for the eurozone and stable financial markets.

"Now we have new developments again, but I would not reinterpret the initial situation within a week," Kocher said.

Markets currently expect no action from the ECB and see steady rates throughout 2026.

(Reporting by Balazs KoranyiEditing by Francesco Canepa)

Key Takeaways

•Martin Kocher advises ECB to be cautious with preemptive policy changes.
•Geopolitical uncertainty has risen due to recent global events.
•Kocher highlights the importance of not acting before risks materialize.
•Eurozone growth expectations have slightly improved.
•Markets anticipate steady ECB rates through 2026.

Frequently Asked Questions about ECB must be cautious in acting preemptively against uncertainty, Kocher says

1What is monetary policy?

Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.

2What is the European Central Bank?

The European Central Bank (ECB) is the central bank for the eurozone, responsible for managing the euro and implementing monetary policy for the member states of the European Union that use the euro.

3What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.

4What are financial markets?

Financial markets are marketplaces where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives, facilitating the exchange of capital and investment.

5What is economic growth?

Economic growth is the increase in the production of goods and services in an economy over a period, typically measured by the rise in real GDP (Gross Domestic Product).

Caution in ECB Policy Adjustments

But Kocher said he would be cautious in acting before risks actually materialised, especially if inflation risk were not clearly skewed in one particular direction.

Geopolitical Uncertainty

"I would be cautious," Kocher said. "Some risks can be addressed in advance, but many cannot, because otherwise one commits to a course of action too early and communication becomes difficult."

Current Market Expectations

He added risks had "shifted slightly to the positive" in the past six months, with slightly stronger growth expectations for the eurozone and stable financial markets.

"Now we have new developments again, but I would not reinterpret the initial situation within a week," Kocher said.

Markets currently expect no action from the ECB and see steady rates throughout 2026.

(Reporting by Balazs KoranyiEditing by Francesco Canepa)

Key Takeaways

•Martin Kocher advises ECB to be cautious with preemptive policy changes.

•Geopolitical uncertainty has risen due to recent global events.

•Kocher highlights the importance of not acting before risks materialize.

•Eurozone growth expectations have slightly improved.

•Markets anticipate steady ECB rates through 2026.

Frequently Asked Questions

1What is monetary policy?

Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.

2What is the European Central Bank?

The European Central Bank (ECB) is the central bank for the eurozone, responsible for managing the euro and implementing monetary policy for the member states of the European Union that use the euro.

3What is inflation?

Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.

4What are financial markets?

Financial markets are marketplaces where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives, facilitating the exchange of capital and investment.

5What is economic growth?

Economic growth is the increase in the production of goods and services in an economy over a period, typically measured by the rise in real GDP (Gross Domestic Product).