During an event in Barcelona yesterday, ECB Governing Council Pablo Hernandez de Cos, said, “The process of monetary tightening is already well advanced, although, with the information currently available to us, we still have some way to go.”
He further explained, “We also anticipate that interest rates will have to remain in restrictive territory for a long time to reach our target in a sustained manner.”
Acknowledging the potential impact of this strategy on economic activity, de Cos pointed out, “The tightening process is having and will have short-term costs in terms of lower economic activity.”
However, he underscored the necessity of this process in maintaining price stability, which he deemed crucial for promoting long-term economic growth.
“Keeping price stability is the main contribution that the central bank can make to ensure economic growth solid long term,” he concluded.
