ECB Governing Council member Pablo Hernandez de Cos highlighted that despite the positive trend in declining inflation rates, outlook is clouded by rising energy costs, persistent high inflation in the services sector, and ongoing geopolitical tensions.
He expected that inflation would continue to decrease in the upcoming quarters, albeit at a slower pace than previously observed due to certain upward base effects.
“The ECB’s governing council considers that if this inflation outlook is maintained, it would be appropriate to start reducing the current level of monetary policy tightening in June.”
