Bank of Greece (BoG) Governor Yannis Stournaras said he did not favor a reduction in interest rates by the European Central Bank (ECT) at its meeting in December, replying to a question during an interview to MNI media.
Stournaras, who participates in ECT Board of Directors sessions, said that European economy is “at a balanced point right now, why cut interest rates? This is a question. If inflation continues to recede, then we can think about it.” The Greek central banker explained that despite most arguments indicating a drop in inflation and growth rates, there is no need to rush to a decision for a reduction at ECB’s next session (in December).
The ECB approach is to have a strategy of managing threat at a highly uncertain time but that is not meant to allow a preventative reduction of rates. “If a drop in interest rates is not going to change the situation, then why I should I do it?” he underlined.
