MADRID, May 31 (Reuters) – The European Central Bank (ECB) should not pre-commit to a precise path for interest rates due to current economic and geopolitical uncertainties, Pablo Hernández de Cos said on Tuesday. , member of the Board of Governors of the institution.
“We will have to (…) refine the normalization process based on incoming data,” he said in a speech in Barcelona.
According to him, for the ECB to adopt an approach of gradual monetary normalization, it is essential that inflation expectations remain pegged to the 2% target.
Eurostat’s first estimate showed on Tuesday that inflation in the euro zone in May reached 8.1% year on year, a record level four times higher than the ECB’s target, which raises doubts about the scenario. that a gradual increase in the cost of credit in July could be enough to start the decline in prices. (Report Jesús Aguado; French version Claude Chendjou)
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