Greeks against lower ECB rates

European Central Bank council member Nicholas Garganas said there is no need to lower borrowing costs in the dozen euro nations as the region’s economy recovers and inflation risks increase.

“Price increases this year might be somewhat higher than previously expected,” said Mr Garganas, who as head of the Greek central bank is one of 18 rate setters at the ECB, said. “There is no need, as things stand at the moment, for any change’ in the bank’s lending rate.”

“Inflation in the euro region has been edging up as oil prices rose and the euro retreated from a record reached in February,” he said.

“That’s limiting the scope for the bank to lower borrowing costs to support an economic recovery that’s struggling to accelerate because consumers remain reluctant to spend.”