The European Central Bank kept interest rates unchanged, with president Christine Lagarde downplaying the recent euro rally and again describing inflation as being in a “good place”. The ECB called the economy “resilient” but did not offer guidance on future steps, reaffirming incoming data will steer decision-making. Ms Lagarde said officials discussed the common currency this week, reiterating they do not target a particular exchange rate. While acknowledging the stronger euro “could bring inflation down beyond current expectations”, she described risks to the inflation outlook as broadly balanced. The foggier outlook, particularly on tariffs, could curb investment and drag down growth, ECB executive board member Piero Cipollone cautioned last week.

Source: Irish Examiner February 05, 2026 15:50 UTC