ECB's Stournaras: Need to see inflation sustainably below 3% by mid-year before cutting rates

Eren Sengezer FXStreet

European Central Bank (ECB) Governing Council member Yannis Stournaras told Reuters on Monday that they need to see inflation staying sustainably below 3% by the middle of next year before cutting interest rates.

"We can't risk it," Stournaras added and said that they will also have to evaluate the overall state of the economy.

Market reaction

These comments failed to trigger a noticeable reaction in the Euro. At the time of press, the EUR/USD pair was up 0.25% on a daily basis at 1.0922.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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