Sintra, Portugal, July 2, 2024 (Lusa) - The governor of the Bank of Portugal, Mário Centeno, expects further interest rate cuts later this year, but emphasised that the data must be monitored "meeting by meeting".

"I expect a few more cuts this year, but we have to monitor them meeting by meeting," Centeno said to Bloomberg on the sidelines of the European Central Bank Forum, which is taking place in Sintra,near  Lisbon, until Wednesday.

Even so, he doesn't believe this will happen at the July meeting.

The governor said it was necessary to analyse the figures that are yet to emerge, pointing out that we have come from a "very difficult situation".

The former finance minister also said that there is reason to be "moderately proud" of the inflation trajectory, as it is approaching the 2% target in the medium term.

For the European Central Bank (ECB), the 2% is a base that allows it the flexibility to reduce interest rates in more adverse situations.

Centeno said that the success of this trajectory is due to monetary policy, but also to workers and companies.

"The labour market is very important for the European economy these days. It's the pillar of stability," he emphasised.

At its last meeting in June, the ECB cut its key rates by 25 basis points. The next meeting is scheduled for 18 July.

The ECB Forum is being held in Sintra until 3 July, bringing together some of the central banks' leading figures to discuss the evolution of monetary policy.

PE/ADB // ADB.

Lusa