ECB Expected to Cut Rates in June, Then Pause Amid Trade War Uncertainty
The European Central Bank (ECB) is expected to implement one final interest rate cut in June before pausing its monetary easing cycle, according to Yannis Stournaras, a member of the ECB Governing Council and head of the Bank of Greece.
“I believe we will reduce interest rates one more time in June and then I see a pause,” Stournaras told Greek outlet Kathimerini in an interview published Friday.
His comments reflect a growing consensus within the ECB that, after multiple cuts to stimulate the eurozone economy, the central bank may soon adopt a wait-and-see approach, especially amid rising geopolitical and trade-related uncertainty.
The ECB has already cut rates seven times over the past year, amid slowing growth, persistent inflation volatility, and more recently, concerns over the economic impact of renewed U.S. tariffs. Markets are now pricing in a likely move at the ECB’s June policy meeting.
Supporting this outlook, Finnish central bank governor Olli Rehn also told Kathimerini that continued easing in June would be appropriate, assuming incoming data supports current forecasts of stabilizing inflation and moderate economic growth.
“Let’s stay on the path of data-driven decision-making at every meeting,” Rehn said, citing heightened uncertainty due to geopolitical risks and trade wars.
While a June rate cut appears likely, both policymakers emphasized that future decisions would depend on evolving economic data, suggesting the ECB will remain flexible as it navigates a volatile global environment.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
