Yannis Stournaras, a member of the European Central Bank's Board, revealed that monetary policy is likely to become "less restrictive" during 2025, in a clear indication of the possibility of interest rate cuts if economic conditions allow. Stournaras confirmed that the pace of normalization will largely depend on the course of inflation, noting that persistent inflationary pressures could delay the implementation of this direction.
Stournaras explained that the bank is closely monitoring price indicators and economic growth, emphasizing the importance of balancing support for economic recovery and maintaining price stability, at a time when the Eurozone is facing significant challenges regarding the cost of living and energy prices.
In other statements, Luis de Guindos, Vice President of the European Central Bank, indicated that the European economy is currently going through a phase of "concern and uncertainty," amid escalating trade tensions and global geopolitical fears. De Guindos added that despite this turbulent climate, he remains "relatively optimistic," considering that recent U.S. tariffs serve as a wake-up call for Europe to act quickly to enhance its economic competitiveness and strengthen supply chains.
These statements reflect the varying estimates within the European Central Bank regarding the future of monetary policy, as markets prepare to watch for any indications of interest rate cuts or adjustments to stimulus policies in the coming year.
