Economics
ECB’s Stournaras Sees Neutral Rate at Around 1.5% or Even 2%
- Rate hikes may mean large output losses, Greek governor says
- Fiscal policy shouldn’t conflict with what monetary is doing
Yannis Stournaras
Photographer: Yorgos Karahalis /BloombergThis article is for subscribers only.
The European Central Bank hasn’t reached yet the neutral interest rate, which could range between 1.5% to 2%, according to Governing Council member Yannis Stournaras.
“We want to approach what our models suggest is the neutral rate,” Stournaras said at the Prague Financial Forum organized by Eurofi, according to a transcript of his remarks sent by Bank of Greece. “We are not yet at the neutral rate which is much higher than zero. It may be around 1.5%, or even 2%.”