ECB's Stournaras: next week's interest rate hike would be enough- CGTN
Reuters
Published Jul 19, 2023 17:04
ATHENS (Reuters) - Another quarter-point interest rate rise by the European Central Bank should be enough and further tightening might damage the economy, ECB Governing Council member Yannis Stournaras said in an interview with CGTN Europe on Wednesday.
The ECB raised interest rates to their highest level in 22 years at its June 14-15 meeting and said a ninth consecutive hike was all but guaranteed in July as it predicted inflation would stay above its 2% target through the end of 2025.
"We might have one further move next week of 25 basis points, but I'm not sure that we're going to go further than that," Stournaras, who is also the head of the Greek central bank, said. "We'll stop there. I think that's my opinion," he told the broadcaster, which is part of the China Global Television Network (LON:NETW).
Stournaras is considered a dove among the Governing Council's 26 members.
Asked what would argue in favour of ending the rate increases rather than going further, Stournaras said:
"The argument that inflation is falling and we have found out that we are at the optimal point that further increases of interest rates might damage the economy."
Traders and analysts expect the ECB to raise its benchmark rate by 25 basis points to 3.75% when it meets next on July 27.
ECB Governing Council member Klaas Knot said on Tuesday that a rate hike beyond July "would at most be a possibility, but by no means a certainty".
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Written By: Reuters
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