Eurozone inflation falling, ECB rate cuts expected – ECB’s Centeno

By Aya El Sayed On May 16, 2024

European Central Bank Governing Council member Mario Centeno. Credit: European Parliament.

Eurozone inflation is steadily decreasing towards 2 per cent, and the European Central Bank (ECB) will soon begin reducing interest rates, ECB policymaker Mario Centeno announced on Thursday, according to Reuters.

He refrained from confirming if this would occur at the next meeting in June.

“The nearing of the inflation rate towards 2 per cent is real, and we are certain that the monetary policy interest rate will come down,” Centeno stated during a news briefing in Lisbon.

Centeno acknowledged market expectations for a June rate cut but emphasised that decisions would be data-driven and preferred gradual cuts over abrupt reductions.