For larger interest rates reductions that will bring the euro interest rate below 2%, even at 1.5%, this year, bankers are preceded by the US president’s trade war, declaring the US president, Donald Trumpby specifying recession to USA and significant slowdown in the eurozone.
Discussing yesterday (7.4.2025) with the Minister of National Economy and Finance, Kyriakos Pierrakakis, the bankers said that immediately, Trump duties have a relatively minor impact as they relate to 4% of exported Greek products. They added that the US is the third country in tourist arrival and estimated that the most vulnerable industry on Trump duties is shipping.
Of particular interest today are expected today – from the step of the BoG General Assembly – and the positions of BoG Governor Yiannis Stournaras on the impact on the Eurozone and Greece economy by Trump duties. In an interview with the Financial Times, the Bank of Greece Governor warned that the upcoming trade war is likely to have a serious impact on economic growth in Europe. “A strong negative impact on growth may result in economic activity being much weaker than expected, diverting inflation at rhythms below our goals,” he said.
It is recalled that on April 17, the ECB is expected to decide what its monetary response will be (the next interest rates) on Trump duties.
At yesterday’s first meeting of the Minister of National Economy and Finance, Kyriakos Pierrakakis with the Hellenic Bank Association, the intensity of digitization in banking processes, further support for small and medium -sized enterprises and the largest flow of real estate banks on the market were the issues raised.
In the digitization side, the minister called for a joint team to set up the Ministry of National Economy with the heads of the IT of banks to proceed with digital projects that will reduce bureaucracy and improve citizens’ service. As for banks’ real estate, which are expected to increase the bid for the “My Home II” program, banks have brought back their earlier proposals on how to make real estate transfers faster.