ECB’s Müller: Current Policy Rate Consistent With Economy and Inflation Outlook

21 November 2025

By David Barwick – VIENNA (Econostream) – European Central Bank Governing Council member Madis Müller on Friday said that the ECB’s interest rates were in line with its inflation forecast as well as the state of the euro area economy.

During a panel discussion at the Conference on European Economic Integration of the Austrian National Bank, Müller, who heads Eesti Pank, said that “inflation now being very close to 2%, and also, to the best of our knowledge, looking forward a couple of years, both what the markets are expecting and what we are expecting ourselves, it really seems that it is likely that we will have inflation close enough to 2% also in the foreseeable future.”

The policy rate was “right now in the place where it’s consistent with the economic cycle and the outlook for the inflation,” he added.

“But having said that, of course, we always have to remain vigilant, because you don’t know what will happen,” he continued. “And this is really the main lesson, I think. For the last couple of years, we had so many shocks to the global and European economy that the result was us throwing away all the macroeconomic projections that we used to have.”

“So, if you’re asking if there’s any reason [for] paying attention or being vigilant, then of course there always is,” he said.