ECB’s Stournaras raises risk of too low inflation, Platow reports

A weak eurozone economy may drag inflation below the European Central Bank's 2% target, ECB policymaker and Bank of Greece Governor Yannis Stournaras said in an interview published on Thursday, reaffirming his expectation for two interest rate cuts this year.

The ECB has faced too high inflation for nearly three years, responding with a long streak of rate hikes that it only recently began to dial back.

Stournaras, the head of the Bank of Greece and one of the doves on the ECB's Governing Council who favor lower rates, said growth was lower than the central bank expected, and so could be inflation.

"The renewed signs of weak economic activity and the high level of uncertainty will very likely dampen inflation more than had been expected," he told German financial newsletter Platow Brief. "This suggests that there is a risk of inflation falling below the 2%...