Central Bank Policy

The European Central Bank meets March 19 amid conflicting signals: February job losses hit 92,000 while oil prices jumped 36% on Iran conflict. Former Fed official Loretta Mester says central banks need 'convincing evidence' of inflation retreat before cutting rates, even as labor markets weaken.

Chicago Fed President Alan Goolsbee said interest rates can drop further in 2026 if inflation moderates, contrasting with the ECB's cautious stance. The divergence pressures the euro as US markets rally on dovish Fed signals while European policymakers maintain tighter conditions. Contactless payments in Finland jumped 23% to €8.4 billion in Q2 2025 as payment infrastructure evolves.