Eurosystem

The European Central Bank should keep cutting interest rates by small increments and there is no need to ease policy to a level that starts stimulating economic growth, Cypriot policymaker Christodoulos Patsalides has said.

The European Central Bank is expected to cut interest rates again this week amid a darkening outlook, with political turbulence in the eurozone's two biggest economies adding to the troubled picture.

It would be the ECB's third straight reduction as it increasingly focuses on spurring lending to boost consumer spending and business investment in the 20 countries that use the euro.

The European Central Bank is expected to continue cutting interest rates this month, ECB policymaker Yannis Stournaras said on Monday.

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." 

The Association of Cyprus Banks (ACB) said on Thursday that it sees further progress in the economy, driven by the reduction of interest rates in the context of the easing of monetary policy by the European Central Bank (ECB), the ACB's President Aristidis Vourakis said, noting that ECB rate cuts are being reflected in the lending rates of the Cypriot banking system.

The European Central Bank is expected to lower interest rates again this week as anxiety about inflation in the eurozone fades and concerns over sluggish growth mount.

Inflation fell to 1.8 percent across the 20 members of the euro area in September, the first time it has been below the ECB's target of two percent since 2021.

Even if the European Central Bank reduces interest rates twice in 2024, they will still not drop below 3%, Bank of Greece Governor Yannis Stournaras told the Financial Times in an interview published on Wednesday.

The Eurozone economy is showing weaker performance than anticipated, prompting the European Central Bank (ECB) to assess its impact on consumer prices at its upcoming meeting, according to ECB Executive Board member Frank Elderson.

The European Central Bank (ECB) has cut interest rates again as inflation in the Eurozone slows and economic growth falters. However, no clear guidance was given on future actions, even though investors expect continued easing in the coming months. The deposit rate was lowered by 25 basis points to 3.5%, a move anticipated after a similar cut in June.

European shares jumped on Thursday after the European Central Bank (ECB) cut interest rates again as inflation hovers within striking distance of its 2% target and the domestic economy is skirting a recession.

The pan-European STOXX 600 index was up 0.8% at 511.98 points, hitting one-week highs, with all regional bourses ending the session with healthy gains.