ECB’s Centeno: No Need to Jump From Objective to Objective

11 October 2023

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Mário Centeno on Wednesday said that there was no need to rush to further adjustments of monetary policy instruments.

In an interview with Politico posted to the website of the Banco de Portugal, which he heads, Centeno said that the Council had not yet discussed all its options with respect to reducing the ECB's balance sheet further or to reserve requirements, but 'need[s] to take all these decisions in due time and not rush and jump from objective to objective.'

Otherwise, he said, transmission could be impaired and financial stability could be at risk.

‘We did not want to take the risk that financial instability or any fragmentation would jeopardize our main job, which is price stability’, he said.

‘So, if at this stage we jump into different domains of our policies … this risks harming transmission and our message that we are focused on fighting inflation’, he said.