ECB Tone Meter Weekly Report: Hawkish Bias Grows Stronger Even as Middle East Ceasefire Holds

ECB Tone Meter Shows Continued Hawkish Trend

This week, Econostream's ECB Tone Meter registered a modest increase for both the Governing Council and the Executive Board, despite the recent ceasefire in the Middle East. The Governing Council's score rose to +0.91 from last week's +0.80, while the Executive Board's reading edged up to +0.58 from +0.54.

Both indicators remain firmly within the "slightly hawkish" category, which the ECB Tone Meter defines as scores between +0.5 and +2.5. Recent statements from policymakers suggest growing confidence that economic conditions are moving closer to the negative scenario outlined in the ECB's March forecasts. Although the possibility of an interest rate increase in April remains on the table, no definitive decisions have been made.