ECB's Call for Action

Mario Centeno, a member of the European Central Bank (ECB) Governing Council, has highlighted the urgent need for timely measures to bolster the eurozone economy. Centeno expressed a preference for acting sooner rather than later, particularly when it comes to reducing interest rates.

Challenges Ahead

In a recent interview with The Wall Street Journal, Centeno pointed out that the high cost of borrowing is significantly hampering economic activities, with the risk of inflation dropping below the ECB's target of 2%. He emphasized the necessity of further rate cuts to encourage investment and combat economic stagnation. Despite some ECB members' belief that current rates do not impede growth, Centeno argued that structural issues such as low productivity and demographic changes keep the neutral rate low.

Concerns Over US Tariffs

Additionally, Centeno voiced concerns about the potential impact of US tariffs on European goods, labeling them as a serious threat to economic recovery.