ECB’s Kocher: Policy Stance “Compatible” With Inflation Objective

9 February 2026

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Martin Kocher on Monday said it would take a material shift in the environment for the ECB to reconsider its current stance, arguing that “at the moment, the policy stance is compatible and in line with our objective.”

Kocher, who heads the Austrian National Bank, told Reuters, “I think the risks are balanced now,” adding that this applies “[b]oth with regard to the inflation outlook, and with regard to the economic outlook.”

On the exchange rate, he argued the euro’s earlier firming is already embedded in the ECB’s projections and said it would become a concern only if inflation moved far enough from target to drag down longer-term expectations, describing that scenario as theoretical for now.

A broader global realignment is also lifting the euro’s profile, he said, with “more interest in the euro” helping to make it “more of a safe haven currency.”

Preparation is therefore essential even if it is not an objective, he said: “It’s not an objective to play a larger role as the euro internationally, but we might be forced to do so,” adding, “It’s important to be well prepared.”

Kocher told the new agency that is why the ECB is discussing tools such as “international repos, swaps, or whatever instruments available in the toolbox for stabilizing the international financial system,” calling it “part of the mandate to sustain financial stability.”

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