Finance
ECB's Stournaras: Another rate cut dependent on economy weakening further
Published by Global Banking & Finance Review®
Posted on June 6, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 6, 2025
1 min readLast updated: January 23, 2026
ECB's Stournaras indicates potential rate cuts if the economy weakens, with current rates at 2%. Decisions are data-dependent.
ATHENS (Reuters) -If the European economy weakens further then the European Central Bank might cut interest rates again, policymaker Yannis Stournaras told Bloomberg TV in an interview on Friday, adding that "this is not expected".
The ECB cut rates for the seventh time in a row on Thursday to prop up a euro zone economy that was struggling even before erratic U.S. economic and trade policies dealt it further blows.
"If the economy weakens more, if inflation falls in the medium-term sustainably below 2% then we might cut, but this is not expected," said Stournaras.
Most ECB policymakers back keeping interest rates, now at 2%, on hold at their next gathering in July, or possibly longer, depending in part on the prospects for trade with the United States, sources told Reuters.
Stournaras said that the best thing for now is a wait-and-see stance. "We are keeping options open, meeting by meeting, data dependent," he said.
(Reporting by Lefteris Papadimas; Editing by Alex Richardson and Toby Chopra)
Yannis Stournaras indicated that if the economy weakens further and inflation falls sustainably below 2%, the ECB might consider cutting rates again, although this is not expected.
The current interest rate set by the European Central Bank is 2%, following a series of cuts aimed at supporting the euro zone economy.
Most ECB policymakers support keeping interest rates on hold at their next meeting in July, depending on economic data and trade prospects with the United States.
Stournaras mentioned that the ECB is adopting a wait-and-see approach, remaining data dependent and keeping options open for future meetings.
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