ECB’s Kažimír: Ignoring Upside Risks to Inflation “Would Be a Mistake”

15 September 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Peter Kažimír said on Monday that neglecting upside risks to inflation would be a mistake.

In a blogpost published on the website of the National Bank of Slovakia, which he heads, Kažimír said that last week’s decision to keep rates unchanged “reflects shared confidence that inflation is behaving as desired”, given that the ECB was still “in a good place.”

Still, he cautioned that this did not mean the ECB would be complacent in the face of global developments, he said.

“The path to achieving our inflation target has been uneven, and we must remain vigilant in addressing lingering risks,” he said. “This includes upside inflation risks. Neglecting them would be a mistake.”

The ECB did not have the need to “overthink or overengineer” the current situation, he said, adding that small deviations from target were inevitable and should not prompt a policy response.

“We should not, and we will not, pre-commit to any future decisions,” he said. “Instead, we must keep all our options open and be ready to adapt as new evidence arrives.”