ECB’s Stournaras Says Too Early to Decide on September Hike

It’s too soon to determine whether the European Central Bank will need to raise interest rates further after the summer, according to Governing Council member Yannis Stournaras.

(Bloomberg) — It’s too soon to determine whether the European Central Bank will need to raise interest rates further after the summer, according to Governing Council member Yannis Stournaras.

“If the baseline develops as we think then perhaps yes in July we’re going to have a hike,” the Greek central bank chief told Bloomberg TV on Wednesday. “But September is too far away. We cannot say.”

Stournaras also said:

  • “Interest rates will be kept at a level that is necessary to bring inflation down”
  • Can’t say now that July will be last hike or how long borrowing costs will be held at their peak
  • Euro zone far away from wage-price spiral
  • “Don’t want to move the goalposts” now on 2% inflation target
  • Read more: ECB’s Guindos Says September Rate-Hike Decision Is ‘Open’

 

–With assistance from Jana Randow, Alexander Weber, Joao Lima and Sotiris Nikas.

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