Interview of the Bank of Greece Governor Yannis Stournaras with Bloomberg
19/09/2026 - Articles & Interviews
ECB Must Be ‘Vigilant’ But Not Rush Action, Stournaras Says
By Alexander Weber and Mark Schroers
The European Central Bank must be mindful of upside inflation risks but shouldn’t act hastily, according to Governing Council member Yannis Stournaras.
While it’s “good news” that there are so far no second-round effects via things like wages, it can’t be taken for granted that the situation will persist, the Greek central-bank chief said in an interview.
“We are seeing a continuum of supply-side shocks and we cannot simply look through that, and at the same time, there’s also a strong demand element due to fiscal expansion and the boom in AI Investment,” he said in Dublin, where he’s attending a meeting of European finance ministers and central bankers. “We must remain vigilant.”
Policymakers, who’ve raised borrowing costs twice since the Iran war broke out, are debating what more they need to do to return inflation to 2% from more than 3% now. Some say the surprisingly robust performance of the region’s economy gives them leeway to hike further. Others, though, worry that growth can’t withstand much more tightening.
With more than a month until the next decision, Stournaras signaled he hasn’t made up his mind, and that the various economic outlooks prepared by the ECB may serve as a guide.
“If there’s an inflation surge in September or a rise in energy costs that take us well into the adverse scenario, a hike in October can’t be excluded,” he said. “But if there is a bit of doubt, we’ll not do anything and wait until the next round of forecasts. There’s no need to rush action.”
As oil and natural gas prices rise once again, President Christine Lagarde stressed that upswings in energy markets don’t necessarily translate into higher interest rates. Even so, other Governing Council members speaking to Bloomberg in the Irish capital prepared the ground for further moves.
Markets are leaning toward a third quarter-point increase in the deposit rate next month, to 2.75%. After that, they see at least two more before inflation is dealt with, though economists are less sure policy will require that level of tightening.
Stournaras cautioned that the backdrop remains volatile.
“If data on the economy shows that resilience doesn’t continue or activity growth is decelerating, I think that would be a reason not to hike, and a reason to pause,” he said. Also, “if there’s an agreement in the Middle East, it could bring energy prices down very quickly again.”
Stournaras stressed that this week’s hike by the Federal Reserve also helps the ECB. “The Fed’s rate decision was positive for its credibility and for the credibility of monetary policy worldwide, because of the central role played by the Fed and the dollar.”
The debate about the ECB’s next steps is happening against a backdrop of rising bond yields in the euro zone, with a measure of French risk on Friday exceeding one percentage point for the first time in 14 years amid growing caution among investors over the country’s wide budget deficit and political uncertainty.
For Stournaras, the situation is still under control, though he added that political developments will play an important role in how it evolves.
“Up to now at least, we haven’t seen any big turmoil,” he said. “I hope governments continue to be aware of the need to be fiscally prudent given our past experience with policies that aren’t careful enough.”
— With assistance from Alessandra Migliaccio, Daniel Basteiro, William Horobin, Jorge Valero, Dasha Afanasieva, and Kamil Kowalcze.