(Bloomberg) -- The European Central Bank’s campaign of monetary tightening may have been completed, according to Governing Council member Mario Centeno.

“It can be expected that the cycle of interest-rate rises has been, for now and with the present economic conditions, concluded,” the Portuguese central bank chief told reporters Wednesday in Lisbon. “These interest rates are compatible with bringing down inflation to the medium-term objective.” 

Centeno also said:

  • “Real interest rates will continue increasing because inflation is falling, which means financial tightening hasn’t been completed. So we have to have some caution with decisions in the near future”
  • “Rate increases in the next meetings is a matter, as you know, that the ECB decided to analyze on a meeting-by-meeting basis. But the message that came out in September is quite clear for the expectations we set for the next meetings”
  • “We still don’t have the complete effect of monetary-policy transmission on financing conditions”
  • “As for the banks, it’s required that at this time they take care of the loans that they granted and take advantage of this moment to create financial cushions to be able to face the uncertainties and evolution of the monetary cycle”
  • Read more: ECB Not Yet at Price Target, More Work to Be Done, Lane Says

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