European Central Bank Governor Gabriel Makhlouf told reporters the institution remains committed to steering inflation back to its 2% inflation goal. He emphasized the ECB will use all tools, signalling markets that price stability continues to dominate policy thinking. The reassurance aims to calm investors worried about a prolonged period of elevated rates.

Investors watch the ECB to see if June’s policy meeting will bring a rate hike. Makhlouf declined to confirm if tighter borrowing costs are needed, leaving the market to price in uncertainty. The euro‑zone’s mixed CPI readings, with core inflation inching down while services prices stay sticky, kept traders cautious. Bond yields edged higher, reflecting lingering doubts about the timing of any further monetary tightening.

By refusing to signal a concrete path, Makhlouf keeps the ECB’s options open while reinforcing its credibility on inflation. Traders will gauge future statements for any shift in tone that could move euro‑dollar spreads or influence equity valuations tied to financing costs. The stance underscores that any decision in June will hinge on upcoming price data rather than pre‑set expectations for investors.