Reported 5 months ago
European Central Bank Governing Council member Mario Centeno stated that the recent increase in workers' pay in the euro zone should not be a concern for inflation. He believes that the drop in real wages due to the conflict in Ukraine will be reversed in the upcoming years, with the recovery aligning with inflation converging to 2%. This perspective contrasts with some market reactions, as investors reduced bets on interest-rate cuts following the wage data and signs of economic recovery in the euro-area. ECB officials, including Centeno, continue to express confidence in the disinflationary process, indicating a cautious approach towards monetary policy adjustments.
Source: YAHOO