“Any further resurgence in inflation or inflation expectations could delay or even halt the process of monetary policy normalization, worsening financial conditions and growth momentum,” Stournaras, who is governor of the Bank of Greece, said at the Greek central bank’s annual shareholders’ meeting.
Stournaras’ comments come against the backdrop of European Union countries weighing approval of a first set of targeted countermeasures on up to $28 billion of US imports from dental floss to diamonds in the coming days.
Average inflation in the eurozone settled at 2.2%, compared to 2.3% in February. The high prices in Greece highlight the ongoing cost-of-living pressures in the country.
The new gross monthly minimum wage is expected to rise by 5% to 6%, reaching approximately €880, in a country where almost half of employees make less than €1,000 per month.
Regarding the European Central Bank’s next moves on interest rates, he indicated that he does not foresee significant changes in monetary policy for the time being
The most notable changes in the Greek cabinet reshuffle include Kostis Hatzidakis being appointed Deputy Prime Minister and Kyriakos Pierrakakis taking over as Minister of National Economy and Finance.
