Published by Global Banking & Finance Review®
Posted on May 23, 2025
2 min readLast updated: January 23, 2026
ECB's Stournaras expects a euro zone rate cut in June, followed by a pause, as economic growth faces challenges from U.S. tariffs.
ATHENS (Reuters) -The European Central Bank is expected to cut euro zone interest rates one more time in June and then pause, policymaker Yannis Stournaras said in comments published on a Greek news outlet's website on Friday.
The European Central Bank cut interest rates for the seventh time in a year last month and warned that economic growth will take a big hit from U.S. tariffs, bolstering bets for even more policy easing in the months ahead.
"I believe we will reduce interest rates one more time in June and then I see a pause," Greece's central banker Stournaras was quoted as saying to Kathimerini.
Echoing his view, Finnish central bank chief Olli Rehn also told Kathimerini: "We are applying data-driven thinking. So, if incoming data and macroeconomic analysis confirm the current outlook for stabilizing inflation and somewhat subdued growth, the appropriate response in June would be to continue monetary easing and lower interest rates."
"Beyond June, let's stay on the path of data-driven decision-making at every meeting, especially as we find ourselves under the clouds of pervasive uncertainty due to geopolitics and trade wars," Rehn added.
(Reporting by Angeliki Koutantou; Editing by Toby Chopra)
Yannis Stournaras stated that he believes the European Central Bank will reduce interest rates one more time in June and then pause.
The European Central Bank cut interest rates for the seventh time in a year last month.
Stournaras mentioned that economic growth will be significantly affected by U.S. tariffs, which is influencing the ECB's policy decisions.
Finnish central bank chief Olli Rehn emphasized the importance of data-driven decision-making and stated that future meetings will rely on incoming data and macroeconomic analysis.
Rehn noted that there is pervasive uncertainty due to geopolitics and trade wars, which affects the decision-making process.
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