ECB’s Centeno: Need to Stick to Data-Dependent, Meeting-by-Meeting Approach
18 April 2024
By David Barwick – WASHINGTON (Econostream) – European Central Bank Governing Council member Mário Centeno on Thursday expressed support for the ECB’s data-dependent, meeting-by-meeting approach to setting monetary policy.
During an event organised by the Reinventing Bretton Woods Committee on the margins of the spring meetings of the International Monetary Fund and World Bank, Centeno, who heads Banco de Portugal, responded to a question as to the possibility of the Governing Council cutting rates only in conjunction with updated macroeconomic projections.
‘If we block dates, we are not data-dependent and we are not doing it meeting by meeting, so that violates in a very rude way what we have been doing’, he said.
‘We need to continue to be data-dependent and doing this meeting by meeting’, he said. ‘There’s no call for forward guidance at this stage.’