Stournararas: At 2% ECB interest rate at the end of 2025

He predicted a reduction of 0.2% in interest rates (ECB) in December and a further reduction in interest rates in 2025, made its commander (TE), Giannis Stournaras. The head of TTE and a member of the Governing Council of the ECB pointed out that he considered a reduction in the ECB’s basic interest rate in December at the Bloomberg conference in Athens. It is recalled that the ECB’s basic deposit rate after two reductions is currently at 3.25%. For 2025 Mr. Stournaras also predicted new interest rate reductions as long as inflation continued its downward trend and under the pretext of unforeseen developments. In this regard he pointed out that by the end of 2025 the ECB’s basic interest rate could have fallen to the so-called ‘neutral level’. Asked to determine the exact amount of the so-called neutral interest rate, Mr. Stournaras said his calculation is not easy yet as he said that “2% the interest rate could be described as neutral”. Source: RES – ICM