Stournaras: New interest rates reduction from the ECB in April

New decline in interest rate by the European Central Bank (ECB) in April was announced by the Governor of the Bank of Greece (BoG) Giannis Stournaras.

In an interview with Econostream today (21.3.2025), Yiannis Stournaras said that “if the meeting (April) was now March, I would be more sure that we would decide, because inflation in February was 2.3%, but we didn’t. We have a month ahead of us, so I can’t tell you that we will decide a reduction. And uncertainty is so high that it is impossible to know what can happen to change our decision. “

“Whether our provision will be made depends on the further reduction of interest rates. Also, figures for the fourth quarter of 2024 show a slowdown in wage growth. Inflation of services is divergent. The core of inflation has also been reduced. Everything is in the direction of a reduction in April, “Mr Stournaras said.

He reiterated his assessment that we will have two more reductions this year and that 2% will be the end level of interest rates, stating that he cannot predict exactly when these two reductions would be made, as in conditions such high uncertainty, it would not be prudent to be so accurate.

He ruled out that the ECB’s key interest rate would be reduced to 2%, saying that “before the European Commission’s decision and the decision on German debt brakes, and with a duty war coming from the other side of the Atlantic, there may have been enough evidence to weaken at 1.5%, but not at 1.5%.”