ECB Governing Council member Peter Kazimir, who also leads the National Bank of Slovakia, said attention has shifted from whether the ECB needs to tighten further to how much additional tightening is required. He argued that waiting for inflation to broaden and for businesses to pass on higher costs is not necessarily sound policy, and added that markets may still be underpricing the eventual policy path.
The euro rose sharply after the remarks, with EUR/USD up 0.7% to around 1.1230, although the move was framed as largely driven by US dollar weakness. The ECB sets eurozone monetary policy with a price-stability mandate centred on roughly 2% inflation and decides rates across eight meetings a year. Beyond rates, it can use Quantitative Easing, deployed in 2009–11, again in 2015, and during the COVID pandemic, while Quantitative Tightening reverses QE by halting additional bond buying and ending reinvestment of maturing holdings, a process usually supportive for the euro.
ECB Baseline Interest Rates
baseline interest rates are currently around 3.25% to 3.50% following ECB cuts in late 2024 / 2025, or let’s see actual recent ECB data for late 2026/2025.
Recent ECB Data and Outlook
baseline interest rates are currently around 3.25% to 3.50% following ECB cuts in late 2024 / 2025, or let’s see actual recent ECB data for late 2026/2025.
