x

Economy

Stournaras: ECB Could Decide a Small Increase in Its Interest Rate This Year

ATHENS – Greek central banker Yannis Stournaras on Wednesday said there was a possibility that the European Central Bank might raise its base interest rate slightly by the end of the year. Addressing a conference in Athens, Stournaras said the ECB must be very careful with the “interest rate weapon” in its effort to deal with the rapid rise in inflation and noted that this was a supply-based inflation, which cannot be tamed using monetary policy tools. However, he stressed that there could be a small increase in interest rates by the end of the year.

Commenting on the impact of the war in Ukraine on the real economy, Stournaras said it could shave 1%-2% off the country’s GDP but the final impact will depend on the duration of hostilities. He sounded reassuring over the impact on non-performing loans, saying there were no signs of an increase so far. He also noted, however, that the current picture could not be considered truly representative of the real situation, given that several loans are still in a state-assistance regime. Stournaras said Greece was not in danger of a new debt crisis, since the average rate of refinancing for state debt was current 1.4%, less than that of Italy and Portugal. The central banker underlined that the country must regain investment grade as soon as possible, however, saying it was a “national goal”.

“We have learned our lesson,” he said, adding that “we cannot have irresponsible fiscal policies”.

RELATED

ATHENS - Greece’s push to get more electric vehicles on the roads, which will offer subsidies to buy them and set up more charging stations, will be applied to taxis as well in the capital and the country’s second-largest city of Thessaloniki.

Top Stories

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

General News

PHILADELPHIA – The Federation of Hellenic Societies of Philadelphia and Greater Delaware Valley announced that the Evzones, the Presidential Guard of Greece will be participating in the Philadelphia Greek Independence Day Parade on March 20.

Video

Mission…to Amyntaio, a TNH Documentary by Clelia Charissis

Dear readers, let me briefly introduce myself, while wishing you "a summer full of positive energy and good health.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.