ECB to Reassess Interest Rates at Each Meeting Amid Ongoing Uncertainty

The European Central Bank will continue to assess the economic situation on a meeting-by-meeting basis and decide whether to raise interest rates, according to ECB policymaker Martin Kocher. In an interview with Austrian newspaper Kurier, Kocher emphasized that the high level of uncertainty due to the Middle East-induced energy shock means that the bank will reassess the situation at every meeting.

The ECB has already adopted a cautious approach to monetary policy, raising interest rates by 25 basis points in its September meeting and reiterating that it would not pre-commit to a specific rate path. This reflects the dominant role of energy prices in influencing inflation and market expectations.