"When it comes to monetary policy, the best response to uncertainty is to keep close monitoring, a firm hand and be ready to act flexibly," the governor of the Bank of Portugal said on Thursday.
The governor of the Bank of Portugal (BoP) said on Thursday that uncertainty about rising inflation requires close monitoring by the European Central Bank (ECB) which should “be ready to act flexibly”.
Mário Centeno was speaking at the annual conference of the Centre for Research in Regulation and Supervision of the Financial Sector (CIRSF).
“When it comes to monetary policy, the best response to uncertainty is to keep close monitoring, a firm hand and be ready to act flexibly,” he said.
The BoP governor said the ECB had the tools to respond “with agility and effectiveness”.
According to the institution’s economic forecasts, the Frankfurt-based ECB is targeting 2.2% inflation in the euro area at the end of this year, a figure that is expected to fall to 1.7% in 2022 and 1.5% in 2023.
For Mário Centeno, euro area growth will continue “strongly and rapidly”, exceeding its pre-crisis level in the fourth quarter, beating projections.