European Central Bank (ECB) Governing Council member Mario Centeno stated on Tuesday that the ECB's goal is a 2% inflation, so its policymakers need to carry a policy trajectory that takes them to the aim. “We should definitely avoid undershooting inflation,” the official stressed.
Centeno also highlighted that the ECB's target suggests having inflation at 2% in the medium term, not in February, or March.
In addition, the policymaker said that he does not see many reasons for concern about wages. “Wage developments in Europe will be compatible with lower price pressures,” he added.
Regarding investors' aggressive ECB rate cut bets, suggesting six quarter-point rate decreases this year, Centeno noted that markets have their own perspective. Meanwhile, he underlined that the ECB's rate-setters are data-dependent and need to remain so to remain credible.