European Central Bank committee Stournaras: supports gradual interest rate cuts, geopolitical risks may disrupt global economic growth.

European Central Bank Governing Council member Yannis Stournaras said that reducing borrowing costs should be "gradual". The Greek central bank governor said in an interview, "Given the increased uncertainty, our actions should be gradual, the pace should be steady, and based on existing data. Of course, if the upcoming data shows that medium-term inflation is below target, the possibility of a significant rate cut should not be ruled out." Currently, the European Central Bank has already cut rates four times by 25 basis points, with further rate cuts expected next year. Like Stournaras, most policymakers have indicated a preference for gradual rate cuts - a term that the market typically interprets as a 25 basis point cut at each step. "Looking ahead, the medium-term inflation trend suggests that there is still plenty of room for further monetary policy easing," the more dovish council member said. "However, what worries me is the growth." The eurozone economy, composed of 20 member countries, is expected to grow by only 0.7% this year, according to the European Central Bank's forecast, with output expected to increase by only 1.1% by 2025. Stournaras said, "The eurozone economy appears to be struggling to regain momentum. Geopolitical risks remain high, and with recent developments in the US and elsewhere, international trade pressures will intensify, which could further undermine global economic growth, negatively impacting the already very modest growth rate of the eurozone economy. In turn, this development could push eurozone inflation below target."