Euro Matters – the European Central Bank Podcast Price Stability in Times of Change
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Jul 2, 2025 
In this engaging discussion, Andrew Bailey, Governor of the Bank of England, and Chang-Yong Ri, Governor of the Bank of Korea, join Jay Powell, Chair of the Federal Reserve, and Kazuo Ueda, Governor of the Bank of Japan, to tackle pressing economic challenges. They delve into strategies for combating inflation while navigating geopolitical tensions and trade uncertainties. The conversation also touches on the implications of digital currencies, the importance of trust among central bankers, and the risks posed by AI on public perception, offering insights into future monetary policies.
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ECB Commits to Data-Driven Decisions
- The ECB will remain data dependent and decide monetary policy meeting by meeting without committing to a fixed rate path.
- This approach helps navigate the uncertain outlook and ongoing shocks effectively.
UK Policy Restrictiveness Over Rate Level
- UK monetary policy remains restrictive despite rate easing; household and corporate debt levels are lower than historical norms.
- The focus is on judging restrictiveness in context rather than target interest rate levels alone.
Neutral Rate Discussion Less Relevant Now
- Discussion of the neutral rate becomes less relevant near target inflation amidst ongoing shocks.
- ECB staff estimate the neutral rate higher than pre-crisis but still lower compared to the US's neutral rate.