Summary of ECB Press Conference and Economic Insights

Date: February 6, 2026

Key Highlights from the ECB Press Conference

• The European Central Bank (ECB) has maintained its key interest rates, with the deposit facility rate remaining at 2% since June 2025.
• ECB President Christine Lagarde addressed the press in Frankfurt, providing insights into the rationale behind the decision and the current state of the eurozone economy.

Inflation and Economic Growth

Recent developments indicate that inflation is aligning with the ECB's target of 2%. The easing of inflation is primarily attributed to declining energy prices, although there has been a slight uptick in goods inflation and a cooling in services inflation. Long-term inflation expectations remain stable at the target level.

The eurozone economy experienced a growth of 0.3% in the fourth quarter, reflecting modest expansion despite global uncertainties. Growth was bolstered by the information and communication services sector, while manufacturing showed resilience, alleviating concerns of a significant industrial slowdown.

Sectoral Performance

Construction activity is on the rise, driven by increased public spending. Business sentiment is improving, leading firms to gradually increase investments despite ongoing uncertainties. The labor market has also seen improvements, with unemployment decreasing from 6.3% to 6.2% in November. Rising real wages are supporting household consumption, complemented by government spending that enhances domestic demand.

Currency and Monetary Policy Outlook

The ECB discussed the impact of the stronger euro on inflation, noting that the appreciation of the euro is already factored into their outlook. While the Governing Council acknowledged the EUR/USD exchange rate, they clarified that the ECB does not target a specific exchange rate with its monetary policy.

The ECB's monetary policy remains flexible and responsive to economic conditions.

Conclusion

The ECB's February decision reflects a status-quo outlook for both the eurozone economy and its policy trajectory. Inflation is on track towards the 2% medium-term target, while economic activity is gradually improving, supported by enhanced risk sentiment, stronger business confidence, and increased consumer spending. The EUR/USD exchange rate remained stable during the conference, trading around 1.18.