MNI BRIEF: ECB Policy Data-Dependent, Larger Cut Not Ruled Out
MNI (LONDON) - The ECB should continue with gradual and steady rate cuts "based on the available data," Bank of Greece Governor Yannis Stournaras said in an interview published on Monday.
However, speaking to Greek daily To Vima, Stournaras said "larger cuts should not be ruled out if incoming data suggest below-target inflation over the medium term, and noted that the inflation outlook suggested "significant room" for further easing.
Stournaras, who sits on the ECB's Governing Council, still has concerns for the economic outlook, saying the euro area economy "seems to be struggling tp regain momentum." Geopolitical risk and global trade concerns could further undermine growth which, in turn "could push eurozone inflation below target." (see MNI ECB WATCH: ECB Cuts 25BP, Drops Restrictive Language )