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14.06.2024

ECB's Governing Council member Centeno: ECB must be prudent in the months ahead

European Central Bank Governing Council member Mario Centeno said on Friday that he expects the disinflation process to resume after August. He suggested that there will be a plateau of inflation until August due to base effects and after that it will come down closer to the 2% target.

The official also noted that the May uptick in the Eurozone real wage growth is not a particular concern for him as some recovery in real wages is inevitable. “Wages didn’t show any stickiness during the inflationary period, and I don’t see this changing,” he said.

In addition, Centeno stated that the data will show how sensitive the economy and inflation are to the rate cuts and stressed that the ECB should continue to be data-dependent and must be prudent in the months ahead.

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