ECB's Stournaras Anticipates Only Three Rate Cuts in 2024 Amid Robust Economic Growth

European Central Bank policymaker Yannis Stournaras indicated in an interview with a Greek media outlet that the ECB is leaning towards reducing interest rates three times this year, primarily due to robust economic growth supporting inflation. While the ECB has hinted at lowering borrowing costs from their current highs starting in June, the exact trajectory beyond that has become less certain recently.

Stournaras, known for his dovish stance and early advocacy for a rate cut in June, highlighted that the stronger-than-expected economic performance in the first quarter makes three rate cuts in 2024 more probable than four.

"We assess that three interest rate cuts in 2024 are the most plausible scenario based on this data," stated the Greek central bank governor in an interview with local news website Liberal.gr. He also noted that if the current pace of economic expansion persists, consumer price growth could slightly surpass the March forecast, albeit without compromising the 2% target by mid-2025.

Stournaras mentioned the possibility of a second rate cut in July and emphasized that options beyond the summer remain open.

Paraphrasing text from "Reuters" all rights reserved by the original author.