Álvaro Santos Pereira stated today that he will not adopt a “dove” stance at the ECB, advocating instead for a more restrictive monetary policy, and expressed that interest rates in Europe will “remain stable for some time.”
When asked about his stance among eurozone governors, Santos Pereira assured that he is not a “dove,” meaning he is not in favor of a less restrictive monetary policy, “absolutely not.”
“In monetary policy, as in fiscal policy, it’s important to have discipline to ensure we have room, some cushions to act,” he argued.
Regarding the interest rate cycle, he pointed out that “at the moment, there is divergence in rates” across various regions, with countries like Japan “likely to continue increasing, albeit prudently.”
In other regions, “it’s quite possible that rates will remain constant for some time,” adding that “everything will depend on the data.”
In Europe, he opined that rates “will remain stable for some time, but it all depends on whether the economy improves and there is a need to act.”
As for his role at the Bank of Portugal (BdP), Santos Pereira reiterated that “the independence of the BdP will be maintained at all costs, regardless of who is in government.”
“I will be fiercely independent,” emphasized Santos Pereira, a former Minister of Economy and Employment in the government of Pedro Passos Coelho, who was questioned by the Committee on his political affiliations.
Álvaro Santos Pereira is being heard in parliament today, a mandatory step to take office as governor of the BdP, where he will oversee banking supervision and participate in the European Central Bank (ECB) in decisions such as interest rates.
On July 24, the government announced that economist Álvaro Santos Pereira, chief economist at the OECD – Organization for Economic Cooperation and Development and former Minister of the Economy from 2011 to 2013 in Passos Coelho’s PSD/CDS-PP government, would be the next governor of the Bank of Portugal (BdP), not renewing Mário Centeno’s mandate.
