First reduction in interest rates by the ECB in June sees o Governor of the Bank of Greece Giannis Stournaras.

In an interview with Bloomberg he mentioned that “recent data suggests we will reach the 2% inflation target in the fall of this year.”

“The latest slowdown in wages gives hope that we are on the right track. But we won’t have enough information to decide on rate cuts before the end of the second quarter — so in June.”

He himself, according to the publication, argued that one of her moves ECB on the interest rate front in April could only happen if the inflation data surprised positively.

In any case, he added, policymakers will make absolutely sure that they do not act prematurely and jeopardize the progress they have achieved so far.

Regarding the speed of de-escalation of interest rates the commander of the TtE estimated that a return to a neutral interest rate level of around 2% could be achieved by the end of the year.

And this because due to the great uncertainty that prevails, the upcoming reductions – as he estimated – will be of the order of 0.25% each time.

It is recalled that today the key deposit rate of the ECB is at 4% and the corresponding for main refinancing operations at 4.50%.

Mr. Stournaras argued that inflation will approach the target set by the ECB much earlier than expected.

For the time of interest rate reduction, he mentioned characteristics ” that April is an option if we get the right kind of data, March is definitely not. We will not take the risk of cutting interest rates until we are absolutely certain that we are on track to achieve our target.”

He predicted that the European Economy this year it will grow at a lower rate than 0.8%, while he described the salary increase of more than 4% as worrying. Adding, however, that companies use the increase in total costs to determine marginsand this is lower.