ECB should focus on rate policy over balance sheet cut, Centeno says

The European Central Bank should focus on interest rate policy over balance sheet operations as its deposit rate is still far from the so-called neutral rate, the bank's intermediate goal, Portuguese central bank chief Mario Centeno told Bloomberg TV.

"Right now frontloading other debates may in my opinion have a destabilising effect that we really need to avoid," Centeno said when asked if it was time to discuss quantitative tightening. "We have a path towards normalisation of monetary policy and that's the focus right now."

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