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  • ECB's Governing Council member Centeno highlights the need for gradual, steady and predictable reduction in interest rates to a neutral level
Ekonomické zprávy
22.10.2024

ECB's Governing Council member Centeno highlights the need for gradual, steady and predictable reduction in interest rates to a neutral level

European Central Bank Governing Council member Mario Centeno unveiled on Tuesday that he still expects inflation to tick up. In his opinion, we won't see inflation much above 2%.

Centeno also warned that undershooting the Eurozone inflation target is a new risk, that could ‘stifle growth’. The official noted that the euro area is not growing, investment is almost flat and signs of the labour market resilience are waning.

In addition, Centeno highlighted the need for a gradual, steady and predictable reduction in interest rates to a neutral level. He added that he thinks the neutral level is at about 2% or slightly below.

The official also said that the incoming data will indicate if the ECB has to deliver a 25- or 50-basis-point rate cut in December. He noted that if data suggests a faster trajectory the central bank will consider it.

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