Stournaras forecasts 0.25% cut in ECB rates
Bank of Greece Governor Yannis Stournaras on Monday forecast a 0.25% reduction in European Central Bank interest rates in December and further reductions in interest rates in 2025.
Addressing a Bloomberg conference organized in Athens, the head of Greece's central bank said that he considers a reduction of the basic interest rate of the ECB in December to be "reasonable."
It should be noted that, after two successive reductions, the ECB deposit rate is currently at 3.25%.
Stournaras predicted new interest rate cuts if inflation continues to decline, subject to unforeseen developments.
Under these circumstances, he pointed out that by the end of 2025 the ECB's key interest rate could have fallen to the so-called "neutral level."
Asked to determine the exact amount of the so-called neutral interest rate, Stournaras stated that its calculation...
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