The Governor of the Bank of Greece and a member of the Board of Directors expressed the assessment that the election of Donald Trump in the USA will have negative consequences for both the American and the European Economy European Central Bank (EKT) Yannis Stournaras.

Answering a related question during the Public Debt conference held today at the Bank of Greece, the governor of the Bank of Greece reserved himself until the new US president announces his programmatic statements. However, as he said, from an “academic point of view” and “on the basis of D. Trump’s pre-election announcements, certain conclusions can be drawn”.

As mentioned by Mr. Stournaras «pre-election Donald Trump developed a specific rhetoric. Assuming, therefore, that he implements some of the immigration and tariff hike announcements, then at least temporarily in the US inflation will rise and the National Debt will increase. Consequently the Federal Reserve will have to react».

For the consequences for the European Economy Mr. Stournaras argued “that they will be negative, while the exchange rate of the euro. In the short term, perhaps the rate of growth will weaken, which will also affect the Monetary Policy of the ECB.However, as he assured the monetary policy of the ECB at least until the next board meeting in December is not going to change. In any case, he repeated, in order to draw definitive conclusions, we must first see specific programmatic statements of the new President.

“We are not changing our monetary policy at least until specific programmatic statements are announced by the new president. Inflation is decelerating and moving better compared to the last forecast in September. At the same time, the economy, as shown by the latest data from Eurostat, seems to have weakened more. In any case, Monetary policy decisions depend on the data we will have at the next meeting in Decembersaid Mr. Stournaras.