ECB’s Patsalides: I would not rush into any decision due to lack of information
By Sagar Dua
Updated: 27 Mar 2026
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European Central Bank (ECB) policymaker and Governor of Central Bank of Cyprus Christodoulos Patsalides said in an interview during European trading hours on Friday that there is no need to rush for any monetary policy adjustments until the central bank has sufficient information.
European Central Bank (ECB) policymaker and Governor of Central Bank of Cyprus Christodoulos Patsalides said in an interview during European trading hours on Friday that there is no need to rush for any monetary policy adjustments until the central bank has sufficient information.
Remarks
We don't have sufficient information to make a decision as to whether this should be looked through or whether we should be making a decision on interest rates.
I would not rush into any decision.
I think we are still along the baseline.
Only two weeks have passed since the cutoff date of the projections, and we haven’t seen anything that points to a change in either the duration or the intensity of the war.
I prefer to be more cautious.
Wisdom comes with more information. Wisdom is a function of necessary information. If you don't have the information, then what you have is gut feeling. And you shouldn't be making decisions on the basis of gut feeling.
ECB FAQs
The European Central Bank (ECB) in Frankfurt, Germany, is the reserve bank for the Eurozone. The ECB sets interest rates and manages monetary policy for the region. The ECB primary mandate is to maintain price stability, which means keeping inflation at around 2%. Its primary tool for achieving this is by raising or lowering interest rates. Relatively high interest rates will usually result in a stronger Euro and vice versa. The ECB Governing Council makes monetary policy decisions at meetings held eight times a year. Decisions are made by heads of the Eurozone national banks and six permanent members, including the President of the ECB, Christine Lagarde.
In extreme situations, the European Central Bank can enact a policy tool called Quantitative Easing. QE is the process by which the ECB prints Euros and uses them to buy assets – usually government or corporate bonds – from banks and other financial institutions. QE usually results in a weaker Euro. QE is a last resort when simply lowering interest rates is unlikely to achieve the objective of price stability. The ECB used it during the Great Financial Crisis in 2009-11, in 2015 when inflation remained stubbornly low, as well as during the covid pandemic.
Quantitative tightening (QT) is the reverse of QE. It is undertaken after QE when an economic recovery is underway and inflation starts rising. Whilst in QE the European Central Bank (ECB) purchases government and corporate bonds from financial institutions to provide them with liquidity, in QT the ECB stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive (or bullish) for the Euro.
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