By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Yannis Stournaras said on Wednesday that an interest rate hike in June was the most likely scenario.

In an interview with Greek newspaper Kathimerini, Stournaras, who heads the Bank of Greece, said that “[t]he most likely development is a rate hike in June.”

He said the current environment generated “an extremely delicate balance” for monetary policy, adding that if the overshoot of the inflation target was temporary, “the response should be balanced.”

Stournaras said that “a careful adjustment of monetary policy in a more restrictive direction is capable of limiting the intensity of second-round effects without disproportionately harming economic activity.”

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