Inflation could be on track to meet the European Central Bank’s 2 per cent target in the first half of 2025, boosting the case for policymakers to cut “highly restrictive” interest rates faster than previously anticipated, Greece’s central bank governor has said.
Yannis Stournaras said he backed two more quarter-point rate cuts this year, the first at the ECB’s meeting next week in Slovenia and another one at its final gathering of the year in December, after most recent data on economic activity and inflation was much softer than expected.
“Even if we have one cut of 25 basis points now and another one in December, we will be back to just 3 per cent — still in highly restrictive territory,” Stournaras told the Financial Times, adding that there is a likely case for further easing of policy in 2025.