{"id":5572,"date":"2026-05-14T21:17:00","date_gmt":"2026-05-14T18:17:00","guid":{"rendered":"https:\/\/en.tomanifesto.gr\/?p=5572"},"modified":"2026-05-14T21:17:00","modified_gmt":"2026-05-14T18:17:00","slug":"yannis-stournaras-ecb-interest-rates-will-rise-if-inflationary-pressures-are-strong","status":"publish","type":"post","link":"https:\/\/en.tomanifesto.gr\/?p=5572","title":{"rendered":"Yannis Stournaras: ECB interest rates will rise if inflationary pressures are strong"},"content":{"rendered":"

The increase in interest rates by the European Central Bank Bank in June<\/b> announced by the Governor of the Bank of Greece<\/b>, Giannis Stournaras<\/b>.<\/p>\n

Mr. Stournaras<\/b> even left open the possibility of further increases if inflationary pressures on the economy are strong and persistent<\/b>.<\/p>\n

As the BoE Governor said today, speaking at the FT’s conference with Kathimerini, it all depends on when the Hormuz Strait<\/b> opens. In the event that the oil price remains at current levels (of $105 a barrel<\/b>) then the European economy will now be moving between the worst-case and worst-case scenarios<\/b>. <\/p>\n

“If it stays there, that’s between the second and third scenario, rather than the first and second scenario of the European Central Bank. I hope that doesn’t happen, because if it continues, then the European Central Bank will have no other option but to raise interest rates. But we are all despairing of that<\/b>,” he said.<\/p>\n

Suggesting that such a development would cause a slowdown in the economy<\/b> in addition to an increase in inflation. In the event that the increase in inflation is small, then “we would go to a small increase in interest rates<\/b>“. But if the increase in inflation is large and sustained for a long period of time, then he said “I am afraid we will go to other situations”.<\/p>\n

He assessed that Greece is comparatively in a better position<\/b> because of its good past performance, as “we have safety cushions<\/b>“. “We have safety cushions on the fiscal side, on the banks, on the insurance companies, on the non-financial companies that have good profitability<\/b>. So, we are in a better situation than we were in similar crises in the past, when we were in a fiscal crisis, in a banking crisis at the same time. So therefore, now we can deal with the crisis with greater degrees of freedom<\/b>, but unfortunately not to neutralize all the effects,” the Governor of the BoE underlined.<\/p>\n

In response to a question regarding political developments<\/b> in view of the upcoming elections<\/b>, Mr. Stournaras<\/b> stressed that “I am confident that the country will always have a government and a parliament which, if and when necessary, will take the necessary measures<\/b>, especially in cases like the ones we have today with external shocks of great importance. The worst thing is inaction<\/b>!”. He recommended that in any case responsible fiscal policy<\/b>, financial stability<\/b> and reforms<\/b> should continue. “We need to continue on these three very simple things, to continue on the path that we have embarked on over the last few years and which has now brought us to be considered a global success story,” he said.<\/p>\n

Assessing the impact of the Recovery Fund<\/b> on the Greek economy<\/b>, Stournaras<\/b> said that “it has left an imprint, because to get the money you have to make reforms. It brings about 300 reforms<\/b>. These reforms translate into increased productivity<\/b> and increased economic growth<\/b>. But even beyond that, when this package is over, it doesn’t mean the money from Europe is over.”<\/p>\n

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The Governor of the Bank of Greece, Yannis Stournaras, has announced that the European Central Bank will raise its interest rates in June.Mr …<\/p>\n","protected":false},"author":1,"featured_media":5573,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-5572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"acf":[],"_links":{"self":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/5572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5572"}],"version-history":[{"count":0,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/posts\/5572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=\/wp\/v2\/media\/5573"}],"wp:attachment":[{"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.tomanifesto.gr\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}