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ECB's Centeno Predicts Low Inflation Until 2028

9/20/2025

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Summary

Story summary

Mario Centeno, departing ECB Governing Council member, predicts inflation may stay below 2% until 2028.
He warns that prolonged low inflation could lead the ECB to intervene to maintain expectations.
The ECB's deposit rate is currently 2%, with President Lagarde affirming the effectiveness of existing policy.
Centeno identifies downside risks to inflation, indicating possible further rate cuts.
He cites US trade tensions and euro appreciation as influences on inflation and GDP.

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Story summary

Mario Centeno, departing ECB Governing Council member, predicts inflation may stay below 2% until 2028.
He warns that prolonged low inflation could lead the ECB to intervene to maintain expectations.
The ECB's deposit rate is currently 2%, with President Lagarde affirming the effectiveness of existing policy.
Centeno identifies downside risks to inflation, indicating possible further rate cuts.
He cites US trade tensions and euro appreciation as influences on inflation and GDP.