Anna 
Mario Centeno, a distinguished member of the European Central Bank (ECB) Governing Council and the Governor of the Bank of Portugal, shared insights on Thursday, reaffirming key aspects of current policy and the economic landscape:
Inflation Outlook: Centeno expressed confidence that the present policy stance would facilitate the achievement of the target inflation level.
Policy Predictability: He emphasized the importance of predictability in monetary policy, highlighting the need for a stable and consistent approach.
Impact of Israeli Conflict: Centeno mentioned that, in his view, the ongoing conflict in Israel has not yet significantly impacted economic data.
Labor Market Stability: He underscored the need to maintain stability in the labor market, acknowledging the pivotal role it plays in overall economic health.
Monitoring Oil Prices: Given the influence of oil prices on economic dynamics, Centeno noted the necessity of closely monitoring fluctuations in oil prices.
Data-Driven Flexibility: He stressed the importance of maintaining flexibility in policymaking, allowing for adjustments based on the evolving economic data.
Market Reaction:
Following Mario Centeno’s comments, EUR/USD is presently trading at 1.0621, registering minimal changes on the day. The pair had previously retreated from three-week highs as it anticipates the release of U.S. Consumer Price Index (CPI) data. These insights provide a glimpse into the ECB’s stance and the economic considerations at play.
