European Central Bank committee: support two more 25 basis point rate cuts this year

On October 9th, Jin10 Data reported that Yannis Stournaras, a member of the European Central Bank’s Governing Council and the Governor of the Bank of Greece, said that the eurozone’s inflation rate may reach the European Central Bank’s target of 2% in the first half of 2025, which will prompt policymakers to reduce the “highly restrictive” interest rates at a faster pace than previously expected. Stournaras said he supported two more 25 basis point rate cuts this year because recent economic activity and inflation data has been much weaker than expected. Stournaras pointed out that “confidence indices are on the brink,” and that the inflation rate has fallen faster than expected compared to the September forecast. The eurozone’s inflation rate fell to 1.8% in September, the first time it has fallen below the European Central Bank’s target since 2021. Stournaras believes that there are almost no members in the Governing Council who fundamentally oppose the recent policy path of the European Central Bank.