Finance
ECB policy 'in a good place' despite small inflation worries, policymakers say
Published by Global Banking & Finance Review®
Posted on December 8, 2025
1 min readLast updated: January 20, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on December 8, 2025
1 min readLast updated: January 20, 2026
ECB policy is stable despite minor inflation concerns, say Dutch and Irish central bank governors. Services and food inflation are noted issues.
DUBLIN (Reuters) -European Central Bank policy is in a "good place" the Dutch and Irish central bank governors said on Tuesday, repeating the bank's long-standing mantra that has kept expectations for further rate cuts muted.
"When it comes to inflation itself... I think we're in a good place right now," Irish central bank chief Gabriel Makhlouf told a conference, echoing the words of Olaf Sleijpen at the same event in Dublin.
"I do worry a bit about where services inflation sits, which is higher than it should be. I do worry a bit as to what I see happening to food inflation," Makhlouf added.
(Reporting by Padraic Halpin; writing by Balazs Koranyi; editing by Andrew Heavens)
Monetary policy refers to the actions taken by a central bank to manage the money supply and interest rates in an economy to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation, and avoid deflation, to keep the economy running smoothly.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, aiming to maintain price stability and oversee the financial system of the member states.
Financial stability refers to a condition where the financial system operates effectively, allowing for the smooth functioning of financial markets and institutions, and the economy as a whole, without excessive volatility or crises.
Economic growth is an increase in the production of goods and services in an economy over a specific period, typically measured by the rise in Gross Domestic Product (GDP).
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