The European Central Bank should cut interest rates at each meeting until it reaches a neutral level that will neither limit nor stimulate economic activity, according to Bank of Greece Governor Giannis Stournaras.

“I think yes, we should have a cut every session from now until we get to what we call a neutral rate”said on Thursday Mr. Anchorman at Bloomberg TV. “As I have said of course this is a vague concept but according to estimates it is 2%.”

Mr. Stournaras said a fourth rate cut of a quarter of a point this year in December – to 3% – was currently the “right answer”, adding that he “can’t say” whether a rate cut is out of the question 50 base units.

“We still don’t have anything on the table on the other side, we don’t know how the markets will react, what the Fed will do”he said.

ECB officials are gearing up for the final policy meeting of the year, with investors and analysts agreeing that another quarter-point hike is the most likely outcome after a bigger-than-expected slowdown in inflation.

Most also predict a series of rate cuts in 2025, although it remains to be seen how that perception will be affected by Donald Trump’s return to the White House – especially in light of his plans to impose tariffs on key trading partners.

Mr. Stournaras said earlier this week that such tariffs could weaken European economic activity and even lead to recession and deflation.

Its vice president European Central Bank Luis de Guidos told Bloomberg on Wednesday that it is “clear” that interest rates will be cut further “in the coming months and quarters,” but officials should be cautious given the current heightened uncertainty.

“We are worried about the public debt. We are concerned about financial stability. If we get to the worst point, if there is a trade war, there may be chaos in international trade that will affect financial stability,” noted Mr. Stournaras.