ECB’s Dolenc Sees Less-Pronounced Inflation Undershoot Next Year

Euro-area inflation is likely to slow less significantly below the European Central Bank’s 2% target in 2026 than feared, supporting the case for a steady hand on interest rates, Governing Council member Primoz Dolenc said.

“Current data show that the inflation undershoot we had projected for next year might even be slightly less pronounced than expected,” the acting Slovenian central-bank chief said in an interview. This “will probably be reflected in our next projection.”