The European Central Bank (ECB) has implemented its eighth consecutive interest rate cut of 25 basis points.
The ECB indicated that the outlook for the eurozone economy and monetary policy is improving following a series of economic shocks.
“We are nearing the conclusion of a monetary policy cycle that has been addressing multiple challenges, including COVID, the ongoing conflict in Ukraine, and the energy crisis,” stated ECB President Christine Lagarde during a recent press briefing.
The recent downward adjustments primarily stem from expectations of reduced energy costs and a stronger euro.
In contrast, banking sources informed “N” that these continuous rate cuts may also stem from concerns about potential economic stagnation, particularly in light of Trump’s tariffs, the easing of inflation, and the rapid adoption of new technologies reshaping the economic landscape.
Impact on Greek Loans
As a result, banks may be compelled to further reduce interest rates to avoid losing borrowers. This will make loans more attractive and affordable, enabling businesses to borrow more easily with the expectation of another rate cut by the end of the year, as per the sources’ projections.
