European Central Bank policymaker Alvaro Santos Pereira has warned that the ECB may need to act swiftly to prevent inflation from becoming entrenched.
Speaking to Portugal's Antena 1 radio, Pereira stressed the importance of monitoring economic data closely. He noted that history shows central banks should respond quickly when price pressures spread.
“When there is an inflationary spiral, I prefer that we act swiftly and decisively,” Pereira said. He declined to confirm whether he supports a rate hike at the next ECB meeting, but emphasized that decisions will be based on updated forecasts and data.
Financial markets are closely watching ECB officials for clues on future interest rate policy as inflation remains above target.
