Interest Rates

ECB must cut rates twice before summer break, Yannis Stournaras says

The European Central Bank governing council member said Europe should not wait for the US to move on interest rates before making a cut

Skyline of Frankfurt at night with the European Central Bank headquarters beside the River Main. Picture: Getty Images

The European Central Bank must lower borrowing costs twice before its August summer break and another two times before the end of the year, without being swayed by the US Federal Reserve, according to a governing council member.

“We need to start cutting rates soon so that our monetary policy does not become too restrictive,” Yannis Stournaras, who also heads Greece’s central bank, said.

“It is appropriate to do two rate cuts before the summer ...