European Central Bank Governing Council member Mario Centeno said on Friday that the euro area has successfully overcome the inflationary process and that monetary policy is now in a cycle of reducing rates. The official emphasised that the recent tariffs imposed by the U.S. are deflationary.
Centeno also indicated that all data indicate the easing cycle will continue in 2025, with euro area inflation projected to fall further and near 1% by early 2026. However, he added that the exact pace of future rate moves remains uncertain.