European Central Bank Governing Council Member Stournaras: Will continue to cut interest rates, tariffs will reduce inflation
European Central Bank Governing Council member and Governor of the Bank of Greece Yannis Stournaras stated that the European Central Bank will continue to cut interest rates. Stournaras emphasized during a speech in Athens that uncertainty is very high, and in such circumstances, "you do not take major steps or make significant commitments." He said, "It seems we will continue to take such measures. But we have already said that the applicable approach is to look at the data and make decisions at each meeting." Since June, the European Central Bank has cut interest rates seven times and is expected to do so again when policymakers meet next month. With U.S. President Trump's sporadic trade policies causing unease among markets and policymakers, what happens next is less clear. Stournaras mentioned that inflation in Europe is expected to slow significantly due to tariffs. He stated, "There is no doubt about this, because in Europe, we do not intend—at least to my knowledge—to take comprehensive countermeasures. If President Trump insists on imposing tariffs on Europe, then Europe will respond, but it will respond selectively. It will not cause inflation."
According to the Zhitong Finance APP, European Central Bank Governing Council member and Bank of Greece Governor Yannis Stournaras stated that the European Central Bank will continue to cut interest rates. Stournaras emphasized during a speech in Athens that uncertainty is very high and said that in such circumstances, "you do not take major steps or make significant commitments." He stated, "It seems we will continue to take such measures. But we have already said that the applicable approach is to look at the data and make decisions at each meeting."
Since June, the European Central Bank has cut interest rates seven times and is expected to cut rates again when policymakers meet next month. With U.S. President Trump's intermittent trade policies causing unease among markets and policymakers, what happens next is less clear.
Stournaras mentioned that inflation in Europe is expected to slow significantly due to tariffs. He said, "There is no doubt about this, because in Europe, we do not intend—at least to my knowledge—to take comprehensive countermeasures. If President Trump insists on imposing tariffs on Europe, then Europe will respond, but it will respond selectively. It will not cause inflation."
