ECB’s Stournaras: ‘Would Now Prefer an Increase of 0.5’

10 December 2022

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Saturday repeated his preference that the December ECB rate hike be 0.5bp rather than 0.75bp.

In an interview with Greek daily Ta Nea, Stournaras, who heads the Bank of Greece, said, ’Personally, I think smaller increases are more appropriate. For example, I would now prefer an increase of 0.5 of a point rather than 0.75.’

According to the newspaper, Stournaras said new non-performing loans facing Greece banks as a consequence of higher interest rates and lower disposable income would be manageable even in a worst-case scenario.