ECB's Zigmans: main goal is price stability

The European Central Bank (ECB) remains steadfast in its commitment to maintaining price stability as its primary objective, according to recent statements and policy decisions. The Governing Council has reiterated that its monetary policy is designed to ensure inflation remains low, stable, and predictable, with a medium-term target of 2%. This objective is central to the ECB’s mandate under the Treaty on the Functioning of the European Union.

Recent developments, including the ongoing conflict in the Middle East, have introduced significant uncertainty into the economic outlook. While the ECB has chosen to keep key interest rates unchanged, it is closely monitoring inflationary pressures from higher energy prices and their potential second-round effects on the broader economy. The ECB’s data-dependent approach allows it to respond flexibly to evolving conditions, ensuring that monetary policy remains aligned with its price stability goal.

The ECB’s monetary policy strategy emphasizes the importance of anchoring long-term inflation expectations and using interest rates and asset purchase programs—to achieve its objectives. The Governing Council’s decisions are based on a systematic assessment of economic, financial, and monetary developments, ensuring that policy remains proportionate and effective in maintaining price stability over the medium term.