ECB President Lagarde (post-meeting statement) says updated assessment confirms that inflation should stabilise at target in the medium-term; economy remains resilient despite challenges

STANCE:

• Will follow a data-dependent, meeting-by-meeting approach


• Rate decisions will be based on inflation outlook and risks, in light of incoming data, and underlying inflation, and monpol transmission


• Does not pre-commit to a rate path


• Ready to adjust instruments to ensure inflation stabilises at target

OUTLOOK:

• Outlook is still uncertain, due to ongoing global trade policy uncertainty, geopolitical tensions


• Challenges include geopolitics, trade; stronger EUR adds to challenges

ECONOMY:

• Low unemployment, balance sheets, defence spending, and impact of past cuts underpin growth


• Growth being driven by services


• Construction momentum is picking up


• Govt spending should contribute to demand

INFLATION:

• Is determined to ensure inflation stabilises at target


• Indicators of underlying inflation are little changed in recent months, consistent with 2% medium-term target


• Wage metrics point to continued moderation in labour costs


• Longer-term inflation expectations are near target, supporting near-term inflation's return back to target


• Outlook for inflation more uncertain due to volatile global environment


• Stronger EUR could bring down inflation more than expected, further below target


• Inflation could become more persistent if energy prices rise

LABOUR MARKET:

• Labour market supports incomes, even though the labour market has cooled further

GLOBAL UNCERTAINTY:

• Geopolitical tensions and global uncertainty could weigh on demand


• New trade agreements could boost growth beyond current expectations

05 Feb 2026 - 13:47- ForexImportant- Source: ECB