ECB’s Centeno: Easing Cycle ‘Likely’ to Continue in 2025, Pace Unknown

6 June 2025

ECB’s Centeno: Easing Cycle ‘Likely’ to Continue in 2025, Pace Unknown
Mario Centeno, governor of Banco de Portugal, at the European Central Bank Forum on Central Banking in Sintra, Portugal on June 26, 2023. Photo by Sérgio Garcia/Your Image for ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Mário Centeno said on Friday that it was likely that the ECB’s easing of monetary policy would continue in 2025.

In the presentation of the economic bulletin of the Banco de Portugal, which he heads, Centeno said that ‘it is likely that the cutting cycle will continue in 2025, but we don’t know at what pace, and we will decide meeting by meeting.’

The Eurozone economy was still fragile and was now feeling the ‘deflationary impact’ of US trade policies, according to Centeno.

‘Inflation is now below 2% and this downward trend will worsen until early next year, when it will get close to the dangerous level of 1%, or slightly above’, he said. ‘This scenario should alarm us.’

Asked about his future once his mandate as Banco de Portugal governor comes to an end on July 19, Centeno said, ‘I have a mandate to fulfil … I will always be available to the country, whether in government, at the BdP, or at a university doing what I like most, which is talking.’

 

Related articles: