Dimitar Radev, Governor of the Bulgarian National Bank and member of the ECB Governing Council, stated that the European Central Bank has not committed to a fixed interest rate path. He emphasized that future policy decisions will depend on incoming economic data rather than past actions.
The ECB implemented rate hikes in June and September 2026, marking its first tightening cycle since 2023. These measures were prompted by inflation exceeding 3%, which was partially driven by rising energy costs linked to geopolitical tensions in the Middle East.
In January 2026, Radev noted that interest rates of approximately 2.5% were appropriate at the time. He previously identified the October and December 2026 Governing Council meetings as potential opportunities for further policy adjustments.
According to September 2026 projections, the ECB expects headline inflation to average 3.0% in 2026, 2.5% in 2027, and 2.1% in 2028. Growth forecasts remain muted, and the bank continues to monitor how energy prices influence broader price expectations.
