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ECB’s Villeroy: Downside Risks to Inflation “Probably More Significant” Than Upside Risks

ECB’s Villeroy: Downside Risks to Inflation “Probably More Significant” Than Upside Risks

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Friday that downside risks to inflation were “probably more significant” than upside risks, and that developments on the exchange rate and the rerouting of Chinese exports could have a “pretty strong disinflationary effect.”

6 February 2026 Central Bank News
ECB’s Kocher Plays Down Euro-Dollar Exchange Rate Developments

ECB’s Kocher Plays Down Euro-Dollar Exchange Rate Developments

By David Barwick – VIENNA (Econostream) – European Central Bank Governing Council member Martin Kocher on Friday said that the ECB would continue to keep an eye on the evolution of the US dollar and the euro but suggested that relevant developments to date had not been problematic and to a degree could actually be viewed positively.

6 February 2026 Central Bank News
ECB Insight: Lagarde’s Exit Strategy From “Good Place”

ECB Insight: Lagarde’s Exit Strategy From “Good Place”

By David Barwick – FRANKFURT (Econostream) – An interesting thing about European Central Bank President Christine Lagarde’s press conference on Thursday was her increasingly obvious discomfort with her own creation. The “good place” mantra is being eased out of the ECB’s active vocabulary—not by contradiction, which would require quite some explaining, but by an unmistakable, ongoing distancing.

6 February 2026 Central Bank News
ECB Insight: Lagarde Keeps the ECB Neutral as Risks Widen

ECB Insight: Lagarde Keeps the ECB Neutral as Risks Widen

By David Barwick – FRANKFURT (Econostream) – With the rate decision a foregone conclusion, Thursday’s European Central Bank press conference was mostly a test of whether President Christine Lagarde would let a turbulent couple of weeks pull the ECB’s messaging off its well-worn neutral track. She did not.

5 February 2026 Central Bank News
ECB Insight: Optionality Without a Tilt

ECB Insight: Optionality Without a Tilt

By David Barwick – FRANKFURT (Econostream) – With rates to remain unchanged, Thursday’s press conference is mainly a test of message discipline. Recent news has been the kind that some observers treat as inviting reactive messaging, but for months the European Central Bank has kept its tone firmly neutral, and that is the posture we expect again this week.

3 February 2026 Central Bank News
ECB Tone Meter Weekly Update: Dovish Tilt Emerges Ahead of the Quiet Period

ECB Tone Meter Weekly Update: Dovish Tilt Emerges Ahead of the Quiet Period

By Marta Vilar – MADRID (Econostream) – The ECB’s tone in our ECB Tone Meter moved slightly dovish this week, both for the Governing Council overall and for the Executive Board, as the quiet period began on Thursday. The former settled at 0.00, effectively neutral, while the latter eased to +0.05, remaining marginally positive and therefore still slightly hawkish.

30 January 2026 Central Bank News
ECB Insight: Euro Strength No Near-Term Trigger for the ECB

ECB Insight: Euro Strength No Near-Term Trigger for the ECB

By David Barwick – FRANKFURT (Econostream) – A rapid euro climb toward the psychologically loaded $1.20 area has reopened a recurring question: when does an exchange rate move become a monetary policy problem?

29 January 2026 Central Bank News
ECB’s Villeroy: Euro Strength Could Weigh on Inflation

ECB’s Villeroy: Euro Strength Could Weigh on Inflation

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member François Villeroy de Galhau said on Wednesday that the ECB was paying close attention to the euro’s appreciation against the US dollar and its potential impact on inflation.

28 January 2026 Central Bank News