BARCELONA: The European Central Bank’s unprecedented bout of interest rate hikes isn’t derailing economic growth in the eurozone, according to governing council member Mario Centeno.

“The economy has reacted well. We’re still growing, albeit more slowly,” Centeno told an event in Barcelona.

“But given the situation, the numbers are good. I don’t see overshooting today.”

While policymakers have been flagging the end of the tightening campaign as inflation heads back towards its 2% goal, some say rate increases could stretch beyond the two quarter-point moves that analysts and investors widely expect in June and July.

Those advocating hikes concluding sooner rather than later can point to the German recession that was confirmed last week as well as a bigger-than-expected slowdown in consumer price growth this month in Spain.

Tuesday’s reading “came in below market expectations, meaning that we’re slowing inflation”, said Centeno, a dove who also heads Portugal’s central bank.

Contributing to that trend in Europe is a reversal in the supply shock that originally stoked prices, he said.

 - Bloomberg