Machluf: The European Central Bank sticks to the 2% inflation target, no comment on June policy

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Gabriele Mahleuf, a member of the European Central Bank Management Committee, stated that the ECB is committed to bringing inflation back to the target range but did not respond to whether there will be a rate hike next month. He told reporters in Dublin on Wednesday, "Our goal must be to achieve a 2% inflation target. To reach this goal, we will take all necessary actions, which is also the reason the market has formed related expectations." The European Central Bank has only two weeks until its next policy meeting, and investors and economists generally expect the central bank to raise interest rates by 25 basis points. Some central bank officials also lean toward raising rates, but others advocate for making decisions based on actual conditions at each meeting as per usual practice. The Governor of the Irish Central Bank, Mahleuf, also agrees with this stance, saying, "Ultimately, we will make judgments based on all circumstances." He also stated, "Any peace agreement with Iran will be a factor in interest rate decisions; it is unlikely to clearly indicate a return to pre-war conditions."
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