Yanis is a governor of Stornaras Bank of Greece and thus a member of the European Central Bank Governing Council (Monetary Policy Setting Committee).
Speaking at Copenhagen, Stornaras stated that the ECB is probably cutting interest rates unless there is a meaningful decline in inflation or development.
Stornaras reported that while inflation is estimated to be slightly lower than 2% for many years, “It is not enough to justify more interest-rate cut alone.” He described the policy in “a good balance – a complete balance, but a good one,”, saying: “there is no reason to work at this time. ,
Authorities continued to borrow for unchanged costs for a second meeting in one line last week (11 September), as vested the price pressure and the risk as manageable. “We are dependent on data-if we find in our monetary-policy meetings that have changed, we will also change,” Stornaras said, but insisted that “it will take enough changes in our view to change our situation.”
He also stated that risk tariffs and geopolitical uncertainty are bent for the negative side, although “these risks are not serious enough to justify another cut.” ECB’s September forecast is 1.7% next year and 1.9% in 2027 is the project inflation, the December update extends to 2028. “At the moment we feel that the inflation of 2028 is going to be close to 2%, but not from below,” he said, urged the warning.
Stournaras reduced the importance of another quarter-point cut, saying that “behavior would not have much effect, but symbolically, yes, it can happen.” He also rejected the idea that a strong euro would move the policy alone: ”We are not in a position in which a factor can change our situation.”
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Potential market effects of such comments:
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FX: Euro rate-cut cycle supported as ECB signal is higher than major shock
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Rate: Eurozone Bond Rally ECB can be stressing data-dependence and stall with “good balance”
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Equity: Limited proximal to shares was easily seen as promoted further
