{"id":1681069,"date":"2022-10-10T06:57:25","date_gmt":"2022-10-10T10:57:25","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1681069"},"modified":"2022-10-10T06:57:34","modified_gmt":"2022-10-10T10:57:34","slug":"ecbs-centeno-warns-of-possible-policy-overreactions","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ecbs-centeno-warns-of-possible-policy-overreactions\/","title":{"rendered":"ECB\u2019s Centeno warns of possible policy overreactions"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">14<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fecbs-centeno-warns-of-possible-policy-overreactions%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1681069&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Sergio Goncalves<\/p>\n<p>LISBON (Reuters) \u2013     The European Central Bank (ECB) should avoid overreactions that could lead to a loss of credibility and must gradually normalise its monetary policy after a long period of ultra-low interest rates, ECB policymaker Mario Centeno said on Monday.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The ECB raised its main interest rate by a record 75 basis points in September as euro zone inflation accelerated to 10% that month, mainly spurred by soaring energy prices as a consequence of Russia\u2019s invasion of Ukraine.<\/p>\n<p>\u201cThe normalisation of monetary policy is absolutely necessary and desirable in the European context \u2026 at the same time monetary policy decisions must be gradual and guided by flexibility and proportionality,\u201d Centeno told an event in Lisbon.<\/p>\n<p>He warned that the costs of an \u201caggressive monetary policy\u201d could outweigh the benefits and that the effectiveness of monetary policy was limited in the face of supply shocks such as energy market disruptions and shortages of raw materials, requiring prudence.<\/p>\n<p>\u201cA decision maker cannot himself become a factor of instability \u2026 and it will be worse if the decisions have to be reversed shortly afterwards, affecting the credibility, in particular of central banks,\u201d Centeno said.<\/p>\n<p>On the other hand, if there were signs of de-anchoring inflation expectations, and second-round effects, such as on wages, they would require decisions to avoid a combination of high inflation and high interest rates.<\/p>\n<p>Centeno said that, in that case, the costs of acting too late would be clearly higher, and so it was important to keep inflation and price volatility limited to certain categories of goods and services. <\/p>\n<p> (Reporting by Sergio Goncalves, editing by Andrei Khalip, Robert Birsel)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/ecbs-centeno-warns-of\/attachment\/file-photo-ecb-governing-council-member-mario-centeno-speaks-during-2\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/10\/tagreuters.com2022binary_LYNXMPEI990IP-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI990IP-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Sergio Goncalves LISBON (Reuters) \u2013 The European Central Bank (ECB) should avoid overreactions that could lead to a loss of credibility and must gradually normalise its monetary policy after<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1681069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1681069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1681069"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1681069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1681069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1681069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1681069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}