interest rate cuts expected from ECB official

Yannis Stournaras, a member of the European Central Bank Governing Council and the President of the Central Bank of Greece, said that there could be four interest rate cuts of 25 basis points by the end of the year. Stournaras, an ECB official, stated that a total of 100 basis point interest rate cuts by the end of 2024 would be reasonable. Stournaras, one of the dovish members of the bank, said in an interview with a newspaper, “If inflation is in line with our March forecasts and this trend continues until the end of the year, I think there will be interest rate cuts this year. I think there could be four 25 basis point cuts, totaling 100 basis points.” The official, who stated that this was not a common view, said that some ECB officials were more cautious and wanted the cuts to be more moderate. The latest inflation data from France and Italy also suggest that it would be appropriate to start interest rate cuts soon. As inflation approaches the ECB’s 2 percent target, many ECB officials have begun to support President Lagarde’s view that the cuts will begin in June. Stournaras added that the differences of opinion within the Governing Council were not as great as reflected in the media.