By Marta Vilar – DUBLIN (Econostream) – European Central Bank Governing Council member Gabriel Makhlouf said on Wednesday that that the ECB should lead markets rather than follow them, warning that it “would be a big mistake” to raise rates without the justification of evidence, simply because markets expected it.

In comments to Econostream following the presentation of the Central Bank of Ireland’s 2026 Financial Stability Review, Makhlouf, who heads the institution, was asked whether credibility concerns were becoming the main factor pushing the ECB toward a June hike.

He said he did not feel the ECB should act only because the market anticipated a move. “We lead the market, we are not let by the market,” he said.

“What’s more important is that whatever decision we make, the evidence, the explanations and the arguments are clear and well articulated so that everybody, including the market, understands why we’re making the decision,” he said.

Makhlouf added that “it would be a big mistake if the evidence said don’t put up rates and we do so only because the market thinks so.”

Asked whether the ECB was currently facing such a situation, he said the conflict had lasted longer than policymakers had initially expected and there was still no clear sign of an imminent resolution.

“We are seeing effects, we are seeing indirect effects,” he said. “As I said, I haven’t seen sort of second-round effects, but I have heard people starting to talk about them.”

Makhlouf said he was looking forward to seeing the new ECB staff projections and discussing them with colleagues ahead of the June meeting. “It’s clear to me that we’re coming to an important meeting,” he said.

“We're absolutely going to make the right decision and not one just because the markets will be happy or not,” he added. “And genuinely … I don't believe that the markets doubt our determination to meet our 2%.”