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2026-09-19 20:16:10
European Central Bank (ECB) Governing Council member Stournaras stated that if inflation rises significantly, a rate hike in October is possible, but hasty action should be avoided at present. In an interview on Saturday, the Greek central bank governor pointed out that while a second wave of inflation transmission has not yet occurred in areas such as wages, which is a "positive signal," this situation should not be assumed to continue indefinitely. "We are currently experiencing a series of successive supply-side shocks, which we cannot ignore. At the same time, market demand is also very strong, driven by fiscal expansion policies and rapid growth in investment in artificial intelligence," he said at a meeting of European finance ministers and central bank governors in Dublin. "We must remain highly vigilant." With one month until the next monetary policy decision, Stournaras revealed that he has not yet finalized his position, and subsequent economic outlook reports from the ECB will serve as important references for his decision. “If inflation surges sharply in September, or higher energy costs put us in a passive position, then the possibility of a rate hike in October cannot be ruled out,” he said. “However, if there is still considerable uncertainty, we will not act rashly, but will wait for the next round of forecast data before making a judgment. There is absolutely no need to rush into action.” Stournaras also cautioned that the overall economic situation remains volatile. “If economic data shows that economic resilience is unsustainable, or that economic activity growth slows, I believe this constitutes grounds for not raising interest rates and instead pausing rate hikes.” He further mentioned, “If the Middle East can reach a relevant agreement, energy prices may fall rapidly again.”
