ECB's Stournaras sees just three rate cuts in 2024 on strong growth
Reuters
Published May 03, 2024 07:54
FRANKFURT (Reuters) - The European Central Bank is "most likely" to cut interest rates just three times this year as stronger-than-expected economic growth supports inflation, ECB policymaker Yannis Stournaras said in an interview with a Greek media outlet.
The ECB has all but promised to start lowering borrowing costs from their current, record highs in June but the path further ahead has become more uncertain in recent weeks.
Stournaras, a policy dove who was among the first to call for a rate cut in June, said an economic rebound in the first quarter of the year made three cuts more likely than four.
"Based on these data, we now consider the three interest rate cuts in 2024 as the most likely scenario," the Greek central bank governor told local news website Liberal.gr.
"If this pace of economic growth continues, then consumer price growth is likely to be marginally higher than our March forecast, but without jeopardizing the 2% target in mid-2025," he added.
He added a second cut in July was "possible" and options after the summer remained open.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.