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MNI BRIEF: Falling Inflation Puts ECB In New Phase-Centeno


The fall in eurozone inflation seen in the last few quarters and in new economic forecasts allows the European Central Bank's monetary policy “to enter into a new state of consolidation,” Bank of Portugal Governor Mario Centeno told a press conference on Friday.

The way inflation is declining shows that its rise was “temporary,” Centeno said, pointing to the fading effect of supply shocks and monetary tightening as driving factors. (See MNI SOURCES: ECB Needs Sub-3% Core Inflation To Consider Cuts)

The more inflation consolidates around lower levels, the higher real interest rates will be if official rates remain at actual levels, Centeno said, noting that it would be important to monitor the effect of this on the economy.

MNI Rome Bureau | +34-672-478-840 |
MNI Rome Bureau | +34-672-478-840 |

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