ECB Governing Council and Bank of Ireland Governor Gabriel Mahloof said in an interview with the media that if inflation “starts to develop in an unfavorable direction,” the ECB must prepare for further interest rate hikes. Mahloof said that the Eurozone inflation rate was above 3%, and economic growth was “slightly stronger” than market expectations before summer, which made him feel “uneasy.” “The resolution we're about to make next week won't surprise anyone.” Makhlouf said. Mahloof expects that the ECB will also slightly raise the Eurozone economic growth forecast for 2026. He said that the better-than-expected GDP growth rate is one of the factors that made next week's resolution “very clear”. Mahloof said that even if the deposit benchmark interest rate reaches 2.5%, this interest rate level will not inhibit economic activity, and the restrictive interest rate range will start above 2.75%. He said inflation expectations were “at a good level.” There is currently no evidence of a second round of inflation at the wage level. He said, “All kinds of risks are under control.”

ECB Governing Council and Bank of Ireland Governor Gabriel Mahloof said in an interview with the media that if inflation “starts to develop in an unfavorable direction,” the ECB must prepare for further interest rate hikes. Mahloof said that the Eurozone inflation rate was above 3%, and economic growth was “slightly stronger” than market expectations before summer, which made him feel “uneasy.” “The resolution we're about to make next week won't surprise anyone.” Makhlouf said. Mahlouf expects that the ECB will also slightly raise the Eurozone economic growth forecast for 2026. He said that the better-than-expected GDP growth rate is one of the factors that made next week's resolution “very clear”. Mahloof said that even if the deposit benchmark interest rate reaches 2.5%, this interest rate level will not inhibit economic activity, and the restrictive interest rate range will start above 2.75%. He said inflation expectations were “at a good level.” There is currently no evidence of a second round of inflation at the wage level. He said, “All kinds of risks are under control.”