Yannis Stournaras and the Bank of Greece: Insights on Monetary Policy

Yannis Stournaras, Governor of the Bank of Greece and member of the European Central Bank Governing Council (monetary policy setting committee), spoke in an interview with the Proto Thema newspaper over the weekend. He stated, “If inflation develops in line with our March forecast and if this trend continues until the end of the year, I believe that we will have reductions in key interest rates from the ECB this year.” He also mentioned, “Personally, I think it is possible to reduce interest rates four times this year, by 25 basis points each time.” However, Stournaras acknowledged that not all policy makers at the ECB share his view, saying, “This is not yet a unified view. Some colleagues are more cautious and believe that interest rate cuts should be more moderate.” He reassured that the differences of opinion within the ECB’s governing council are smaller than portrayed in the media.