ECB’s Makhlouf: Not Ruling Out Further Cuts or Rate Increases

12 February 2026

By David Barwick – FRANKFURT (Econostream) – European Central Bank (ECB) Governing Council member Gabriel Makhlouf on Thursday said he was not ruling out further interest-rate reductions but also did not exclude the possibility that rates could rise, while arguing that inflation was on track to return to the ECB’s 2% target.

Makhlouf, who heads the Central Bank of Ireland, told Irish radio station Shannonside, “I’m not ruling out further reductions. I’m not ruling out, actually, the possibility that interest rates could also go up.”

At the same time, he said, “at the moment it does look as if inflation is on track to deliver our target, so we’re in a good place.”

The ECB was on course “to deliver on achieving 2% inflation in the medium term,” he said. He emphasized uncertainty, however, and reiterated that policymakers would therefore continue to decide policy meeting by meeting.

“We look at the evidence, look at the data — it’s very difficult to predict precisely what’s going to happen,” Makhlouf said. “But we are on track as things go right now.”

Asked about whether he might seek another term when his tenure as Irish central bank governor ends on coming 31 August, Makhlouf said he was “enjoying my job” but occupied with near-term tasks.

“I took it on to do it for seven years,” he said. “I’m very focused on the next few months. There’s a lot to do.”