Policymaker calls for two ECB rate cuts before the break in August

The Frankfurt-based central bank has monetary policy decisions scheduled for April 11, June 6 and July 18.

The ECB has become more confident that inflation is heading toward the 2% goal, but seek further reassurance before deciding on interest rate cuts. Pic: Hannelore Foerster/Bloomberg via Getty Images

The European Central Bank (ECB) must lower borrowing costs twice before its August summer break and two more times before the end of the year, without being swayed by the US Federal Reserve, according to Governing Council member Yannis Stournaras.

“We need to start cutting rates soon so that our monetary policy does not become too restrictive,” Mr Stournaras, who also heads Greece’s central bank, said. “It is appropriate to do two rate cuts before the summer break, and four moves throughout the year seem reasonable. Insofar, I concur with the markets’ expectations.”