ECB’s Centeno: Economy Too Weak to Be Compatible with 2% Inflation

18 June 2025

ECB’s Centeno: Economy Too Weak to Be Compatible with 2% Inflation
Mário Centeno, Governor of the Banco de Portugal, at the European Central Bank Forum on Central Banking in Sintra, Portugal, on June 28, 2023. Photo by Sérgio Garcia/Your Image for ECB under CC BY-NC-ND 2.0.

By Marta Vilar – MILAN (Econostream) – European Central Bank Governing Council member Mário Centeno on Wednesday suggested that persistent economic weakness would doom to failure the effort to sustainably achieve price stability in Europe.

In the sidelines of the Young Factor International Conference in Milan, Centeno, who heads the Banco de Portugal, said that he was ‘very worried about growth in Europe because it is not coming and if it does not come, inflation will not be 2%.’

The economy had to be stronger in order to be ‘compatible’ with reaching the inflation target of 2%, he said.

 

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