ECB's Kocher says must prevent too high inflation, becoming entrenched

European Central Bank (ECB) Governing Council member Martin Kocher said on Thursday that the central bank must prevent too high inflation from becoming entrenched.

Key quotes

Must prevent too high inflation, becoming entrenched.

Eurozone economy remains fragile. 

Signs of somewhat more Eurozone momentum since summer. 

Market reaction

At the time of writing, the EUR/USD pair is unchanged on the day to trade at 1.1380.

Kocher keeps a steady hawkish tone as Eurozone momentum improves

Kocher’s 6.1/10 score on FXS Speechtracker matches the historic average, signaling a stable policy stance rather than a notable shift in tone. The emphasis on “must prevent too high inflation, becoming entrenched” leans hawkish, reinforcing the ECB’s commitment to keeping price pressures in check and limiting expectations for rapid policy easing.

References to a “fragile” Eurozone economy temper this hawkishness, suggesting caution about growth even as inflation risks remain central. However, the mention of “somewhat more Eurozone momentum since summer” supports a mildly constructive backdrop for the Euro, as it implies the economy may better withstand a prolonged period of restrictive policy.