MNI BRIEF: ECB Should Be Close To 2% In Next Quarters -Centeno
MNI (LONDON) - European Central Bank interest rates should be close to 2% in the coming quarters if there are no shifts in the incoming inflation data, Bank of Portugal Governor Mario Centeno said on Friday.
Centeno, who sits on the Governing Council, acknowledged the risk that ECB projections are more outdated than usual, due to the fact that they do not include the risk of the impact of new trade policies from the incoming U.S. administration and other uncertainties, both geopolitical and political within the EU, saying the "level of uncertainty does not allow us to take advantage of the new European political cycle."
On Thursday, the ECB cut its three key interest rates by 25 basis points on Thursday, sending the benchmark Deposit Rate to 3.0%, the lowest in over two years. (See MNI ECB WATCH: ECB To Cut, Likely To Change Language )
ECB chief economist Philip Lane will speak at an MNI Webcast event on Dec 19. Register here.