ECB’s Santos Pereira: inflation at target, rate moves to hinge on economy
LISBON, Dec 19 (Reuters) - European Central Bank policymaker Alvaro Santos Pereira said on Tuesday inflation in the euro area was expected to remain at the ECB’s target level of around 2% in the coming months and any interest rate moves would depend on the state of the economy.
"Regarding whether there will be a rise or fall (in rates), that will depend on the economic conditions, on whether there will be shocks," said Santos Pereira, who became governor of the Bank of Portugal and member of the ECB Governing Council in October.
He said the European economy was more robust and showing some surprising growth, "but it is still not enough", expressing hope that fiscal packages like those in Germany could have a positive impact.
"(Europe) growing 1.4%, 1.5% should not be our goal, it should be much higher," he said, adding that Europe must become a "more dynamic, more entrepreneurial space".
