Policymakers at the European Central Bank (ECB) must be careful about making large or small interest rate moves. That says the boss of the Greek central bank Yannis Stournaras, reports Bloomberg.
Every decision that is made will be made based on data. “That’s because we are close to the interest rate ceiling,” Stournaras said ahead of the ECB meeting in May. ‘By the way, I don’t mean to say that we’ve already reached the ceiling, but it’s getting closer.’
Although the ECB is expected to raise interest rates on May 4, it remains to be seen what kind of rate hike the central bank will implement. On May 2, the necessary data will be received to calculate the final interest rate.
Inflation in the eurozone has not risen since October, when inflation was around 10 percent, Stournaras said. “We expect the slowdown to increase to 3 percent, to be even higher next year.”