Pereira, who also serves as governor of the Bank of Portugal, said policymakers are closely monitoring incoming economic data to assess the inflation outlook in the eurozone.
European Central Bank Governing Council member Alvaro Santos Pereira said the ECB must remain vigilant against inflation risks and may need to act sooner to prevent broader price pressures from escalating, Reuters reported on Saturday.
Pereira, who also serves as governor of the Bank of Portugal, said policymakers are closely monitoring incoming economic data to assess the inflation outlook in the eurozone.
"Our main concern right now is inflation; we need to study the data very carefully," Pereira said on Portuguese radio Antena 1.
He added that past experience shows that central banks must react quickly when inflation pressures begin to spread throughout the economy.
"I also believe, based on past experience, that we need to act sooner to avoid a more significant second-round effect," Pereira said. These comments come as ECB officials continue to assess the economic impact of rising energy prices and broader inflation risks related to geopolitical tensions.
Pereira said he favors a swift policy shift if inflation shows signs of entering a self-sustaining cycle.
"When an inflation spiral occurs, I prefer that we act quickly and decisively," he said.
When asked whether his comments meant he supported a rate hike at the ECB's next monetary policy meeting, Pereira declined to answer directly.
Instead, he said policymakers would review updated economic forecasts and incoming data before making a decision.
"We will have new ECB estimates and data from different countries, we will see what is happening with prices, and then we will make a decision," Pereira said. Financial markets are closely monitoring comments from ECB officials for clues about the future course of interest rates, particularly as inflation remains above the central bank's target and policymakers assess the impact of recent events in the energy market.
At the ECB's next monetary policy meeting, updated staff forecasts for economic growth and inflation are expected to be presented, which could play a key role in shaping the central bank's policy stance for the remainder of the year.