Isabel Schnabel: Navigating Inflation and Employment in an Era of Supply Shocks and AI
In a March 2026 speech, ECB Executive Board member Isabel Schnabel argued that, despite calls for a dual mandate, single‑mandate and dual‑mandate central banks usually adopt similar policy actions because price stability constrains any employment‑focused easing. She highlighted that more frequent supply‑side shocks, a steepening Phillips curve, and the rise of artificial intelligence reshape the monetary‑policy landscape. The ECB remains committed to its 2 % inflation target, viewing credibility as essential while acknowledging AI‑driven productivity could eventually ease policy constraints. Schnabel warned against fine‑tuning the economy or running it hot for short‑term gains.
Christine Lagarde: Technology, Fragmentation and the New Uncertainty
In her 2026 Global Risk Lecture, ECB President Christine Lagarde warned that the world is shifting from a measurable‑risk environment to genuine uncertainty driven by rapid AI adoption and escalating geopolitical fragmentation. She cited estimates that AI could add up...
Meeting of 4-5 February 2026
The ECB Governing Council met on 4‑5 February 2026 and kept its three key rates unchanged, signalling a data‑dependent stance through 2027. Market reactions to recent geopolitical and tariff shocks were muted, with the euro gaining about 1 % against the dollar...
Financial Statements of the ECB for 2025
The European Central Bank posted a €1.3 billion loss for 2025, a sharp improvement from the €7.9 billion deficit recorded in 2024. The turnaround stems mainly from a dramatic reduction in net interest expense as liability remuneration rates fell and TARGET balances...
Christine Lagarde: Hearing of the Committee on Economic and Monetary Affairs of the European Parliament
Christine Lagarde told the European Parliament that euro‑area inflation has fallen sharply, reaching 1.7% in January and hovering near the ECB’s 2% target. Despite the data, surveys show households still perceive price growth about 1.2 percentage points higher than official...
ECB Publishes Consolidated Banking Data for End-September 2025
The European Central Bank released its consolidated banking data for end‑September 2025, covering 336 banking groups and 2,289 stand‑alone credit institutions across the EU‑27. Total assets rose 0.95 % to €33.44 trillion, while the non‑performing loan ratio edged up to 1.97 %. Return on...