02/10/2024 – 14:31
The head of the European Central Bank (ECB) and president of the Bank of Portugal, Mario Centeno, said that the current state of the euro zone economy, associated with the prices that prevail in the economy and the conditions of the labor market, requires a response from the European Central Bank: interest rate cut.
In an analysis published on the Banco de Portugal website, Centeno pointed out that inflation in the euro zone is well anchored and in convergence towards the 2% target.
“A policy that remains restrictive for a long period can generate the risk of inflation remaining below the target. Speed is the essence”, he assessed.
Achieving a better balance with a stable transition path requires a gradual, constant and predictable process of reducing interest rates to their neutral level, combined with improvements in the institutional scenario and fiscal conditions, he highlighted. For the director, all these elements are essential to promote trust between investors and consumers.
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