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ECB’s Centeno: Total Rate Cuts This Year Could Exceed 100BP
The European Central Bank could potentially reduce interest rates by more than 100bp in total before the end of the year, according to ECB Governing Council member Mário Centeno. In an interview with Econostream on Wednesday Centeno, who heads the Banco de Portugal, observed that the ECB’s forecast model in March had assumed cumulative easing this year of 100bp, but that since then, inflation had come in lower than expected. Asked whether this opened the door to cuts this year totalling more than 100bp, he replied: ‘Yes, potentially. It depends on the confirmation of this reality, because we will reach 2% faster ... (full story)