Eurozone inflation is expected to remain around the ECB's 2% target in the near term, according to ECB policymaker Alvaro Santos Pereira, who stressed that the direction of interest rates will depend entirely on economic developments.
Santos Pereira said any decision to raise or lower rates would be determined by the current economic situation and potential external shocks that could affect growth or inflation.
He acknowledged that the European economy is showing resilience and some signs of better-than-expected growth, but that the level is still not sufficient.
According to him, fiscal packages such as those introduced in Germany have the potential to support regional economic growth in the coming period.
Santos Pereira stressed that Europe should not be satisfied with growth of around 1.4% to 1.5%, but instead needs to become a more dynamic and entrepreneurial economy.
