ECB's Centeno: May need to go below neutral to sustain inflation
European Central Bank (ECB) Governing Board Member Mario Centeno noted that deflationary pressures within the European economy are becoming a concern for policymakers. Dropping interest rates below neutral in order to stimulate the economy may be necessary, according to Centeno.
Key highlights
Undershooting 2% inflation is a risk if investment doesn't pick up.
We may need to go below neutral rate to sustain inflation at 2%.
Pretty clear, we need to keep downward trajectory of interest rates.
I'm ok with gradual rate cuts of 25 bps.
Europe must be united in face of potential tariffs; I see negotiations ahead.
Forex News
Keep up with the financial markets, know what's happening and what is affecting the markets with our latest market updates. Analyze market movers, trends and build your trading strategies accordingly.
