BoG Gov. Against Rate Cut Decision at Dec. ECB Meeting

Bank of Greece (BoG) Governor Yannis Stournaras on Wednesday expressed his opposition to a potential cut in European Central Bank (ECB) interest rates, in answer to a press question and ahead of the Eurozone central bank’s Governing Council meeting next month.

Speaking during an interview with MNI media, Stournaras, a member of the specific council, said Europe’s economy is “at a balanced point right now, why cut interest rates? This is a question. If inflation continues to recede, then we can think about it.”

He also said that despite most assessments indicating a drop in inflation and growth rates, there is no need to rush to a decision for a reduction during the council next session in December.

The ECB approach is to have a strategy of managing threat at a highly uncertain time but that is not meant to allow a preventative reduction of rates. “If a drop in interest rates is not going to change the situation, then why I should I do it?” he maintained.

Source: tovima.com