Euro’s surge casts a shadow over ECB as inflation slips below target
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The European Central Bank (ECB) is expected to address a key topic related to the euro’s surge at its first policy meeting in 2026. After this assertion was made public, analysts warned that the risk of inflation in the euro zone could push the rate further below the target level. Responding to this warning, officials gathered in Frankfurt, the central bank’s seat, raised concerns about this discovery. Despite interest rates remaining unchanged since June and no immediate adjustments expected, officials noted that several important issues still demand their attention. Meanwhile, reports indicate that the Federal Reserve, US President Donald Trump’s threats of new tariffs, and the recent decline of the dollar have all drawn scrutiny since the ECB last set rates on December 18. ECB officials raise concerns about the fate of the dollar Earlier, Trump said the matter of the dollar’s status does not bother him. His remarks substantially contributed to the US currency’s recent major drop, driving the euro up to around $1.20 for a brief time and setting a new all-time high since 2021. Following this finding, officials from the ECB raised concerns that the change could spark mixed reactions among individuals. At this moment, François Villeroy de Galhau, a crucial member of the European Central Bank’s Governing Council, stressed that the euro will be a key determinant of their future monetary policy. On the other hand, Martin Kocher, who also serves on the European Central Bank’s Governing Council, said they will closely monitor the currency for continued upward movement. While the euro became a hot topic of discussion, analysts conducted research and discovered that inflation in the country declined below 2% in December. After several considerations, they forecast that this level will decline further, arguing that the January figures will be approximately 1.7% when the Consumer…
Filed under: News - @ February 1, 2026 5:11 am