Stournaras: ECB must see inflation below 3% by mid-2024 before cutting rates

The European Central Bank must see inflation stably below 3% by the middle of next year before beginning to lower borrowing costs from record highs, ECB policymaker Yannis Stournaras told Reuters on Monday.

Coming from an outspoken dove, Stournaras' comment emphasizes the ECB's resolve to stamp out the worst bout of inflation in at least a generation in the 20 countries that share the euro.

It also highlights the disconnect between the ECB and investors, who expect the central bank to start cutting interest rates in April or even March despite pushback from President Christine Lagarde last week.

"We can't risk it," Stournaras, the governor of the Bank of Greece, told Reuters in an interview.

"We need to see inflation sustainably below 3% by the middle of the year before cutting rates," he added.

The ECB kept rates unchanged last week and said it...