ECB’s Scicluna Reiterates Satisfaction with Current Monetary Policy

20 September 2025

ECB’s Scicluna Reiterates Satisfaction with Current Monetary Policy
Edward Scicluna, governor of the Central Bank of Malta, attending the session titled Assessing the costs of inflation at the ECB Forum on Central Banking, 27 June 2023 in Sintra, Portugal. Photo by the ECB under CC BY-NC-ND 2.0.

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Edward Scicluna on Saturday reiterated that the ECB’s interest rates were appropriate at their current level.

 

In an interview with Bloomberg that essentially duplicated Econostream’s interview a few days previously, Scicluna, who heads the Central Bank of Malta, said, “If things were to stay the way they are right now, you could say that rates are fine where they are.”

 

“Rates are neutral from what we can see,” the agency quoted him as saying.

 

Scicluna again played down undershooting concerns. “It’s impossible to be precisely at 2% all the time, so a projection for 1.9% inflation in 2027 isn’t a reason for concern,” he said. “We currently don’t see inflation trending down from there. It may be one of the risks, but we’ll have to wait and see.”

 

Downside risks to growth “exist but they’re not appearing strong enough to take the economy down,” he said.

 

“We have a resilient economy, which has coped rather well with all the turbulence we’ve experienced,” he said. “Wages are rising — but not as much to be of concern — and fiscal expenditure will be huge. So I would argue risks are balanced.”