Free Trial

ECB’s Müller: Small Undershoot of 2% No Reason to Cut Rates

26 November 2025

ECB’s Müller: Small Undershoot of 2% No Reason to Cut Rates
Madis Müller, governor of Eesti Pank, at the European Central Bank Forum on Central Banking in Sintra, Portugal on June 27, 2023. Sérgio Garcia/ECB under CC BY-NC-ND 2.0.

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Madis Müller said Wednesday that a slight dip in inflation below 2% would not in itself justify further rate cuts.

In comments to Bloomberg, Müller, who heads Eesti Pank, said the ECB was “overall still close enough to the target” even if price growth fell modestly below goal in the near term.

Upside risks remain given planned investment across Europe, including large defense and infrastructure spending in Germany, he said.

“We shouldn’t let ourselves be swayed too much, even if in the short term we’re a little under 2%,” he said, adding that the euro area is “in all likelihood” on the path to recovery and that current rates are reasonably growth-friendly.