Stournaras: ECB won’t have information to decide on interest-rate cuts until June

The European Central Bank won’t have enough information to decide on interest-rate cuts until June, even as inflation seems to be on track to reach the 2% target this year, Bank of Greece chief Yannis Stournaras has said.

Speaking to Bloomberg, he said that the “recent set of data suggests we will reach 2% in the autumn of this year.”

“The latest deceleration in wages gives hope that we are on track. But we won’t have enough information to decide on rate cuts before the end of the second quarter – so June,” said Stournaras.

Stournaras said that “moving toward neutral will take time.

“There’s too much uncertainty in the system to move in bigger steps than 25 basis points. I would expect us to reach neutral levels – around 2% – toward the end of next year.”