Monetary developments in the euro area: January 2026

Lagarde Says ECB Will Observe FX Movements, Won’t Directly Intervene Lagarde: AI Hasn’t Triggered Job Cuts in Labour Market, Says ECB Chief

German Chancellor Merz: Chinese Overcapacities Remain A Problem For Europe - Germany, China Should Work Together To Address Problems - Germany-China Govt Talks Could Happen At End Of This Year Merz Tells Xi the Urgency of Ending War in Ukraine During Talks

It is a pleasure to return to this Committee for our regular dialogue. Let me start with a solemn reminder that this week marks four years since Russia launched its unjustified aggression against Ukraine. Our thoughts are with the Ukrainian people, who continue to endure immense suffering, and we stand in full solidarity with all those affected by this war. The euro area has faced an exceptionally challenging environment over recent years, with high inflation affecting both households and firms. We can now see, however, that our efforts to bring inflation down have been effective. Inflation has fallen markedly from its peak of 10.6% in October 2022. It fluctuated in a narrow range around 2% in the second half of last year and stood at 1.7% in January. The ECB’s decisive monetary policy response played a crucial role in bringing inflation back to target. However, even though inflation has declined, surveys show that many citizens still perceive prices to be ECB’s Lagarde: Inflation Expected to Stabilize at 2% Target in Medium Term Lagarde Says Food Inflation Likely to Decline and Settle Just Above 2% by End of 2026 Lagarde Says Growth Expected from Strong Labour Market and Spending on Defence, Infrastructure, and Digital Sectors

US BRINGS TOUGH DEMANDS TO IRAN NUCLEAR TALKS - WSJ ...