Yiannis Stournaras, Governor of the Bank of Greece, signaled that the European Central Bank (ECB) has probably concluded its cycle of interest rate cuts. Speaking at the sidelines of the EU finance ministers’ meeting in Copenhagen, he emphasized that any further monetary easing would require a “significant change” in the outlook for inflation and growth.
According to the ECB’s September projections, inflation is set to stand at 1.7% in 2026 and 1.9% in 2027, with December forecasts extending to 2028. Stournaras noted that inflation is expected to hover slightly below 2%, which he described as “somewhat concerning, though not seriously alarming.” He added that a further 0.25% rate cut would carry little economic weight, serving mostly a symbolic purpose. He also dismissed the notion that a stronger euro alone could justify a fresh reduction, underlining that the ECB takes into account a broad range of factors including tariffs, exchange rates, energy and food prices, and household savings.
On Greece, Stournaras projected average GDP growth slightly above 2% between 2025 and 2027—about double the Eurozone rate. He argued that recently announced income-support measures by the government have not yet been factored into forecasts and will further support the economy.
Turning to the banking sector, he welcomed cross-border agreements and foreign investment, pointing to recent developments in Cyprus and UniCredit’s stronger role in Alpha Bank. He also acknowledged concerns over France’s credit downgrade but stressed that markets show no signs of panic, downplaying risks of a broader euro crisis.
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