ECB’s Centeno: TPI Was Key to Fighting Inflation Without Fragmentation

24 September 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Mário Centeno on Tuesday said that the transmission protection instrument [TPI] was essential to fighting inflation without creating financial tensions.

In an interview with Portuguese broadcaster NOW, Centeno, who heads the Banco de Portugal, said, ‘The creation, very recently, of yet another protective mechanism for the transmission of monetary policy helped decisively in responding to inflation without creating financial tensions of fragmentation that are always latent in the euro area.’

The euro area had a history of responding to shocks and its capacity to do so had become better over time, he said.

‘The ECB has evolved immensely in its monetary policies to reinforce and respond to the challenges of the euro area’, he said.