24 November | Macroeconomics | CEOs

Centeno calls for ECB to give clear signal of milder rate hikes

As ECB governing council member Mario Centeno stated in his recent interview with Reuters, the European Central Bank needs to hold back the pace of tightening from next month. According to his words, the ECB also has to highlight the exceptionality of 75-basis-point rate hikes as they are linked to a possible inflation peak in this quarter.

Record high rate hikes by 75 basis points were delivered at the last two meetings of the ECB. At the same time, its deposit rate was raised by 200 basis points over the period since June, and in general it increased from its historically lowest level to 1.5%.

Centeno said that they are approaching the levels which might provide stability of prices in the medium term. In his opinion, it means that 75-basis-pount hikes would likely stop being regular.

Mario Centeno, governor of the Bank of Portugal, also added that the ECB is now trying to convey predictability of the future, and he hopes the bank would be very clear at the upcoming meeting in December.

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