European Central Bank (ECB) policymaker Yannis Stournaras projected that the eurozone’s inflation rate will reach its 2% target by early 2025, signaling a gradual return to price stability. The remarks underscore optimism about easing inflationary pressures as the ECB continues its efforts to balance monetary tightening with economic growth.
Stournaras’s comments come as the ECB navigates lingering concerns about the impact of high interest rates on growth in key economies. Despite recent signs of progress, inflation remains above target, driven by energy costs and core price pressures. The ECB’s next moves are being closely watched by markets, with analysts debating whether further rate hikes are necessary to cement progress toward long-term price stability.
By emphasizing a timeline for hitting the 2% benchmark, Stournaras offers reassurance to investors and policymakers who have been wary of prolonged inflation overshooting. However, the challenges of maintaining economic momentum while taming inflation leave the ECB in a delicate position as it approaches 2025.
