ECB’s Stournaras: Interest Rates May Go to Around 2% as of Next September

11 November 2024

ECB’s Stournaras: Interest Rates May Go to Around 2% as of Next September
Yannis Stournaras, governor of the Bank of Greece, at the ECB’s Governing Council meeting in Ljubljana on October 17, 2024. Photo by Adrian Petty/ECB.

By David Barwick – FRANKFURT (Econostream) – European Central Bank Governing Council member Yannis Stournaras on Monday suggested that euro area interest rates could be lowered to about 2% by the end of the third quarter of 2025.

In an interview on Greek news portal mononews, Stournaras, who heads the Bank of Greece, said that ‘inflation is falling, and because inflation is falling, we have started to reduce interest rates, which, it seems, we will continue to lower.’

Asked how far interest rates would be reduced, Stournaras replied, ‘Possibly close to 2% around next September. Possibly.’