ECB's Stournaras says further rate cuts are possible

Yannis Stournaras, a member of the European Central Bank's (ECB) Governing Council, said the regulator will continue to cut interest rates. The official added that the specific decision at each meeting will be based on analyzing fresh economic data.

As emphasized by the head of the Bank of Greece, it is not worth making drastic changes in monetary policy or giving clear promises in the current uncertain situation.

Bloomberg reports the ECB has cut rates seven times since last June and is expected to do so again next month. However, the future path of the EU central bank's borrowing costs remains unclear due to US President Donald Trump's volatile trade policy.

Stournaras expects inflation to slow in Europe as US import tariffs take effect because regional authorities do not have plans to introduce serious trade countermeasures against the United States. Stournaras noted that if Trump insists on imposing duties on EU products, the bloc will react, but selectively.