European Central Bank (ECB) Governing Council member and Governor of the Central Bank of Ireland, Gabriel Makhlouf, indicated that the ECB cannot rule out the possibility of raising policy rates at future meetings. Makhlouf emphasized that risks to inflation remain on the upside, although he does not currently see any signs of second-round effects of inflation emerging in the near term [1].
Makhlouf’s comments were made during the European trading session on Thursday. He reiterated the ECB’s data-dependent approach, stating, 'Can't rule out anything at future meetings,' highlighting the central bank’s openness to further policy tightening if warranted by economic conditions [1].
In terms of market reaction, some selling pressure was observed in the Euro (EUR) against the US Dollar (USD) following Makhlouf’s remarks. However, this move appeared to be driven more by a recovery in the US Dollar rather than a direct response to the ECB official’s comments. As of the time of reporting, the EUR/USD pair was trading flat at around 1.1465 [1].
No specific forward-looking statements or analyst opinions were provided in the source article beyond Makhlouf’s own remarks regarding the ECB’s policy stance and inflation outlook [1].
CONCLUSION
ECB’s Makhlouf signaled that further rate hikes remain a possibility due to persistent inflation risks, though no immediate signs of second-round inflation effects are present. The Euro showed some selling pressure against the US Dollar, but the overall market reaction was muted. Investors are likely to remain attentive to future ECB communications for clearer policy direction.