ECB’s Makhlouf: Changes in Monetary Policy to Be Data-Dependent

8 February 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf on Thursday said that modifications of the ECB’s monetary policy stance would depend on data confirming that inflation was headed towards the 2% target.

In a blog post on the website of the Central Bank of Ireland, which he heads, Makhlouf said, ‘The rate of inflation is falling and any change in our monetary policy stance will depend on the data and evidence as we aim to reach our 2% target in a sustainable way.’

In Ireland, the impact of inflation and high interest rates on household borrowers was ‘cushioned by nominal income growth, fiscal measures, and the relatively slow pass-through of monetary policy by lenders to household borrowing rates’, he said.

‘We are also seeing that the impact of high inflation has been mitigated by fiscal measures, including income tax breaks and energy price subsidies’, he said.