Governor of the Bank of Portugal (BdP) Mario Centeno warned on Wednesday of the need to reflect changes in energy and food prices in prices so that interest rate increases could “suspend”.
“If markets maintain this margin — whether in terms of wages or profits — we won’t feel like these shocks are reversing and monetary policy won’t be able to ‘suspend’,” Mario Centeno told RTP3’s Grande Interview program.
Mario Centeno stressed the European Central Bank’s (ECB) goal of bringing inflation to 2%, saying there are “all conditions” for this.
In this context, he mentioned that energy prices this Wednesday recorded a drop of more than 60%, which has already offset the growth shock, and that in international markets, food prices are falling by 30-30%, stressed: “This is extremely important” . that the reversal of shocks is felt in consumer prices.
If that doesn’t happen, he warned, “we will face the consequences of this failure, which will be to not reflect the reversal of price shocks.” [dos preços da energia e alimentos]”.
However, the head of the supervisory authority considered that “the moment is approaching when the monetary policy of the eurozone can “suspend””, noting that the most recent data confirm that inflation is steadily declining, there are conditions to achieve the goal of 2% inflation in 2025.
“But for this path to be confirmed, we must be on the alert,” he said.
Author: Portuguese
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.