Stournaras: ECB might raise interest rates by 25 bps next week

Another quarter-point interest rate rise by the European Central Bank should be enough and further tightening might damage the economy, ECB Governing Council member Yannis Stournaras said in an interview with CGTN Europe on Wednesday.

The ECB raised interest rates to their highest level in 22 years at its June 14-15 meeting and said a ninth consecutive hike was all but guaranteed in July as it predicted inflation would stay above its 2% 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,” Stournaras, who is also the head of the Bank of Greece, said.

“We’ll stop there. I think that’s my opinion,” he told the broadcaster, which is part of the China Global Television Network. [Reuters]