The drumbeat for change is getting louder and clearer, with the European Central Bank finding itself at a critical crossroads. The time has come, not just for contemplation but for decisive action, as the voices from within its own ranks push for a shift in strategy. Yannis Stournaras, a figure in the ECB’s Governing Council and the head of Greece’s central bank, has made a bold call that cannot be ignored. He asserts that the ECB must engage in a double round of interest rate cuts before the summer siesta hits in August, and not stop there. The journey through 2024 requires two more cuts, making it a quartet of adjustments.
Everyone is aware of German deindustrialization by now, unfortunately industrial production in other major European countries is not looking much better.
Chart @skhanniche pic.twitter.com/5snhtZGAny
— Michael A. Arouet (@MichaelAArouet) March 18, 2024