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MNI BRIEF: ECB Rates Close To 2% In Late 2025 -Stournaras

Bank of Greece head sees key deposit rate close to 2% by end-2025.
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MNI (LONDON) - Bank of Greece Governor Iannis Stournaras told Bloomberg TV Monday that the ECB’s key interest rate could be somewhere close to 2% in late 2025 if things remain as now, adding that the December forecast round would likely see the 2% inflation target achieved in either Q1 or Q2 2025.

Overall, the euro area economy is weak and inflation is falling so the ECB “should continue cutting,” Stournaras said, stressing that the Eurozone is still in tightening territory and there will be a number of cuts if nothing changes. He sees EZ neutral rate at 2%. Asked about the size of the cut in December meeting, Stournaras pointed out that it was reasonable to expect 25 basis points, that being an "optimal reduction”

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MNI (LONDON) - Bank of Greece Governor Iannis Stournaras told Bloomberg TV Monday that the ECB’s key interest rate could be somewhere close to 2% in late 2025 if things remain as now, adding that the December forecast round would likely see the 2% inflation target achieved in either Q1 or Q2 2025.

Overall, the euro area economy is weak and inflation is falling so the ECB “should continue cutting,” Stournaras said, stressing that the Eurozone is still in tightening territory and there will be a number of cuts if nothing changes. He sees EZ neutral rate at 2%. Asked about the size of the cut in December meeting, Stournaras pointed out that it was reasonable to expect 25 basis points, that being an "optimal reduction”