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Stournaras Would Opt for ECB Cuts Should Inflation Fall "Permanently" Below 3%

ECB

Interviewed in Handelsblatt, ECB's Stournaras states that he would consider cutting interest rates if inflation falls "permanently and sustainably below the three percent threshold in mid-2024".

Full Handelsblatt piece here: https://www.handelsblatt.com/finanzen/geldpolitik/...

Highlights include:

  • He expressed “concern” about the rise in bond yields.
  • We are now deep in restrictive territory, no matter which perspective you look at it from
  • The governor is therefore calling for an end to the interest rate increases.
And on rate cuts, an interesting set of answers:
  • I would consider cutting interest rates if inflation falls permanently and sustainably below the three percent threshold in mid-2024.
  • How many of your colleagues agree with this?I hope many. But we haven't discussed that yet.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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