Stournaras: Interest rate rises look set to end soon

Two European Central Bank policymakers on Friday raised the prospect of an end to the ECB’s steepest and longest string of interest rate rises, as the outlook for the eurozone economy worsened despite stubbornly high inflation.

The ECB increased borrowing costs for a ninth consecutive time on Thursday but raised the possibility of a pause in September as recession worries mount.

ECB policymakers Yannis Stournaras and Peter Kazimir both said the end of the tightening cycle was near, although they differed on whether one more rate hike was likely.

“It looks like we are very close to the end of interest rate rises,” Stournaras, the Greek central bank governor and a policy dove who favors lower rates, told Capital.gr.

“In any case, if there is one further [rise] – I see it difficult – in September, I believe we will stop there.” [Reuters]