A reduction in the interest rates of the European Central Bank by 0.25% in December and further reductions in interest rates in 2025 predicted the Governor of the Bank of Greece Giannis Stournaras.

Speaking at the conference organized by Bloomberg in Athens, the head of the Bank of Greece and a member of the ECB’s board of directors, said that he considers a reduction of the key ECB interest rate in December “reasonable”.

It is recalled that the key deposit rate of the ECB after two reductions is currently at 3.25%.

For 2025, Mr. Stournaras also predicted new interest rate reductions if inflation continues its downward course and subject to unforeseen developments.

Under these circumstances, he pointed out that by the end of 2025 the key interest rate of the ECB could have fallen to the so-called “neutral level”. Asked to determine the exact amount of the so-called neutral interest rate, Mr. Stournaras stated that his calculation is not easy, however, as he said that “2% interest rate could be characterized as neutral”.