Interest rate statement from the European Central Bank

European Central Bank (ECB) Chief Economist Philip Lane and Governing Council member Yannis Stournaras have provided signals regarding the timing of interest rate cuts. Lane stated that time is needed to begin cutting rates, adding that they will monitor the June figures regarding inflationary pressures to gain a clearer picture.

STATED THAT 4 INTEREST RATE CUTS ARE NECESSARY

Bank of Greece Governor Stournaras, in an interview with Bloomberg in London, stated that they should cut interest rates twice before August and a total of 4 times by the end of the year.

Stournaras, who said that they should start cutting rates before monetary policy becomes too restrictive, assessed that "Two cuts before the summer holidays and a total of 4 by the end of the year could be reasonable. In this respect, I agree with market expectations."

Stournaras also said he does not agree with the argument that the ECB will not cut interest rates before the Fed.

Lane expressed that the disinflation process is progressing, but that officials are particularly focused on service prices.