European Central Bank Governing Council member Stournaras: Current interest rates are in a good equilibrium state, no further easing is needed.

On September 20, Jin10 reported that European Central Bank Governing Council member Stournaras stated that the bank may have completed its current round of interest rate cuts, and any further easing of monetary policy would require a substantial change in inflation and economic growth prospects. He pointed out that although inflation is expected to be slightly below 2% in the coming years and the risks are tilted to the downside, this alone is not sufficient to justify further rate cuts. “Overall, in an uncertain environment, we are in a good equilibrium state—not a perfect equilibrium, but a good state,” Stournaras, viewed as a dovish policymaker, said. “There is currently no reason to adjust the interest rate level.” “We rely on data—if there is a change in circumstances at the monetary policy meeting, we will adjust accordingly,” Stournaras said, “but this requires a significant change in the outlook for us to adjust our stance.” These remarks echo recent statements from hawkish officials. Estonian Central Bank Governor Müller stated on Friday that the European Central Bank's policy has become slightly accommodative, and there is currently no reason for further interest rate cuts.