Interest rates in the euro zone have reached a “ceiling” according to the governor of the Bank of Greece, Giannis Stournaras, who estimates that their de-escalation will begin from the middle of next year.

In an interview given to the German newspaper Handelsblatt, Mr. Stournaras, responding to a question about the level of interest rates of the European Central Bank, stated that “interest rates have reached their highest level”, clarifying however that this is his personal opinion.

On when the de-escalation will begin he said: “With the added uncertainty due to the conflict in the Middle East, it is even more difficult to answer. Again in my personal view, I would start thinking about cutting rates if inflation in mid-2024 falls below the 3% mark on a permanent and sustainable basis.”

He expressed the hope that the same opinion is shared by many other Central Bankers who participate in the ECB Board.

Regarding the issue of the rise in bond yields and the risks this causes in the refinancing of the Public Debt, Mr. Stournaras said that especially for Greece, the whole situation is “a pleasant surprise, as the debt refinancing needs are small, the effect of the growth-interest rate differential is very favorable and there are primary fiscal surpluses. We deserve to sleep peacefully at night, especially after what we have suffered in the past!”

He added that our country has definitively overcome the crisis as he characteristically said: “Beyond the favorable economic and fiscal developments, it seems that the Greek people have decided to reject populism. The truth is that we were the first to embrace populism, but we were also the first to renounce it. Today there is a clear political horizon. The Greek people seem to value fiscal and financial stability much more than in the recent past.”

He admitted, however, that the Greek economy is still a long way from pre-crisis levels, yet in recent years there seems to be continued progress on all fronts and rapid convergence towards the per capita income of the Eurozone countries, alongside rapid fiscal adjustment.