Stournaras to CGTN: Another looming ECB interest rate hike enough; further raise may harm Europe’s economy

Bank of Greece (BoG) Gov. Yiannis Stournaras, who’s also a member of the ECB’s governing council, on Wednesday again favored a milder monetary policy by the Eurozone’s central bank, saying another quarter-point interest rate hike should be enough, whereas a further tightening may damage Europe’s economy.

Stournaras, considered among the «doves» on the ECB governing council, spoke in an interview with the European affiliate of the China Global Television Network.

His comments came as the ECB has raised interest rates to their highest level in 22 years, following its latest decision last month.

In recent statements, Greece’s influential central banker said a ninth consecutive interest rate increase was more-or-less guaranteed this month, as the ECB has predicted that the inflation rate would stay above a 2-percent target through the end of 2025.

«We might have one further move next week of 25 basis points, but I’m not sure that we’re going to go further than that… We’ll stop there. I think that’s my opinion», he said, adding: «The argument that inflation is falling and we have found out that we are at the optimal point that further increases of interest rates might damage the economy».