Central Banks
ECB May Cut Rates Twice More This Year, Says Portugal’s Raposo
- Deputy governor says she’s optimistic that inflation will slow
- Recovery of euro-area economy hinges on pickup in investment
The European Central Bank headquarters in Frankfurt, Germany.
Photographer: Alex Kraus/BloombergThis article is for subscribers only.
The European Central Bank will probably be able to lower its deposit rate twice more this year provided price pressures slow in line with expectations, according to Clara Raposo, vice governor of the Bank of Portugal.
Raposo argued that receding inflation expectations should temper wage demand across the 20-nation euro zone, and the pace at which services costs increase should slow as a result.