ECONOMY

Stournaras: Those who see a rise in interest rates ‘are in a hurry’

Stournaras: Those who see a rise in interest rates ‘are in a hurry’

Those who predict that euro area interest rates will rise are “probably in a hurry,” Greece’s central bank chief Yannis Stournaras said on Monday, projecting that inflation will fall below 2% next year.

Stournaras, an ECB Governing Council member, said that despite rising energy prices, the European Central Bank does not expect a significant rise in inflation in the medium term and those who closely monitor the situation do not propose “a knee-jerk reaction of monetary policy.”

“Those who see an increase in interest rates are probably in a hurry,” Stournaras said during a conference in Athens.

Euro zone inflation is expected to approach 4% by the end of the year, twice the ECB’s target rate, before dropping back below 2% over the course of next year.

A selloff in European bond markets gathered pace on Monday, with German debt yields rising to their highest since May while money markets moved to fully price in a European Central Bank rate hike by the end of 2022. [Reuters]

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.