Stournaras: An ECB hike after September would be ‘surprising’
Greek central bank chief Yannis Stournaras did not rule out a further interest rate hike by the European Central Bank in September, but added that any increase beyond that month “would be surprising.”
The ECB has raised interest rates at every meeting over the past year and promised another hike this month, arguing it cannot stop tightening policy until it sees a marked turnaround in the outlook for underlying prices, which filter out volatile food and energy costs.
Stournaras, who is considered a dove on the ECB’s 26-member Governing Council, said that any ECB move in September would be determined by data, and that the inflation outlook and the transmission of monetary policy would be the main factors to watch.
“In July more or less we will have a 0.25-basis point [hike] but in September I’m agnostic, may be, maybe not,” he told reporters in Athens when asked over the issue.
“But I would not see more hikes beyond September as the economy develops now in Europe,” he added.
“I would be surprised if we have more hikes beyond September.” [Reuters]
