The European Central Bank's Governing Council member Mario Centeno said on Monday that Eurozone's inflation is going down faster than the ECB's policymakers expected and the new economic forecasts, set to be published in March, are likely to show a faster drop in inflation. According to the official, these figures will be very important in determining the ECB's policy path.
“For sure we’re much closer to that terminal rate than before,” Centeno stated. “We are approaching it and I think March will be a great moment for us to be very clear about it.”
However, Centeno noted that smaller hikes would need mid-term inflation nearing 2%, and the March forecasts will tell the policymakers exactly where they are in that process.