Centeno assumes conditions for interest rate cuts.
Mário Centeno considers conditions to be met and the next ECB meeting will be on April 11, but the president only hints at interest rate cuts in the summer.
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Lower interest rates: "I think at this moment we are in a position"
According to the Governor of the Bank of Portugal (BdP), Mário Centeno, the European Central Bank (ECB) already has the conditions met to cut interest rates. He did not specify dates, but the next ECB meeting is scheduled for April 11.
"The main concern at the moment is precisely to know and determine the optimal moment to lower interest rates in the euro area. (...) I think at this moment we are in a position to do it," said Centeno, in the context of the Geração Euro competition, quoted by Notícias ao Minuto."
Although Mario Centeno considers it, ECB President Christine Lagarde points to a cut in interest rates only by the summer, when there will be enough data for the decision.
The former Finance Minister also explains that, first of all, it is necessary to understand "how long the labor market can continue to support this apparent better economic performance". This considering that there are currently conditions to seek new growth stimuli for the euro area and for a decrease in interest rates, because "when it starts to materialize" it will be one of the stimuli to avoid recession, according to the news.
In addition, Centeno points to a current base scenario in the Eurozone of stagnation and not recession, with the avoidance of the recessive process being a success, despite the high increase in interest rates.
Interest rates remained unchanged for the fourth consecutive time at the last ECB meeting on March 7, contrasting with the 10 rate hikes previously since 2022. Rates reached an all-time high level, but it is expected that they will soon begin to decline.
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