The European Central Bank's Governing Council member Mario Centeno said on Friday that the ECB's policymakers have to be open to discussing interest rate cuts as soon as March. He noted that March is the date when the largest amount of new data comes and some data may call for the ECB to consider a rate cut but stressed that he does not mean that it is likely.
Centento also admitted that the Eurozone's inflation and growth have been consistently below the ECB's forecasts in recent months - a sign that the downside risks have materialized. He also suggested that inflation may temporarily be below 2% at some point this year and then it will fluctuate around wanted 2%-target.
In addition, the policymaker said that some recovery in real wages is expected but noted that this should disturb the ECB as, in his view, wage growth will still be compatible with price stability, as has been the case so far.
Also, Centento stated that the ECB does not have to rush to a neutral stance as long as the path is sustained and predictable and it is delivering on its job.