European Central Bank policymakers should be cautious and avoid making big or small moves in the next rate decisions, according to Governing Council member Yannis Stournaras.
(Bloomberg) — European Central Bank policymakers should be cautious and avoid making big or small moves in the next rate decisions, according to Governing Council member Yannis Stournaras.
Any decision will be based on data “exactly because we have reached close to the ceiling, close to the maximum increase,” Stournaras said ahead of an ECB meeting in May.
“Close — I didn’t say we have reached it yet, but we are converging toward it,” he said on ERT television according to an interview transcript.
While the ECB is expected to further increase rates on May 4, officials are wary of making firm predictions on how much. Policymakers will get key data on inflation and bank lending two days before they meet.
Euro-area inflation has stopped rising since October, when it was about 10%, said Stournaras, who heads the Bank of Greece. “We expect deceleration close to 3% at the end of the year and even more in 2024,” he said.
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