The European Central Bank is preparing a new interest rate increase, causing concern in the markets. Geopolitical developments, the resurgence of energy risks, and fears of rising inflation are driving the ECB to make decisive moves. It’s worth noting, however, that while borrowing rates are rising, returns for savers appear to remain particularly low.
Interest rates: Banks are winning
Indeed, Greek banks continue to support a large portion of their profitability through interest rate margins, namely the difference between the rates they pay and those they charge on loans. In 2025, this margin in Greece reached 2.3%, while in the Eurozone it moved around 1.3%. This means that Greek banks show significantly higher interest income compared to the situation observed in Europe.
Stournaras’s warning bell
Moreover, the possibility of European Central Bank interest rate increases in June had been left open by the Governor of the Bank of Greece, Yannis Stournaras, while warning that further increases cannot be ruled out as long as inflationary pressures remain intense and persistent.
Speaking at a conference on May 14, Mr. Stournaras emphasized that developments in the global economy depend largely on geopolitical balances and specifically on the opening of the Strait of Hormuz. In the event that oil prices remain high, then the European economy will move between unfavorable and even more unfavorable scenarios.
