ECB’s Centeno: Ideal interest rates should approach 2%, avoiding zero

ECB Governing Council member Mario Centeno remarked today that “the cycle of interest rates will continue to evolve,” signaling ongoing adjustments based on inflation trends. Centeno noted that rates “will fall if inflation helps us, which it’s doing”.

However, Centeno cautioned against a return to zero interest rates, stating, “It would be a very bad sign if that were to happen.” Instead, he suggested that an ideal scenario would see interest rates approaching 2%. He emphasized that this level, with some fluctuations, would create a stable economic and financial environment for both the European and Portuguese economies in the future.