Yannis Stournaras, a member of the European Central Bank, stated that the central bank should lower borrowing costs at every policy meeting until reaching a level that neither restricts nor stimulates economic activity.

"With the current inflation and the development of the real economy, I think yes, we should lower interest rates at every meeting from now on until we reach what we call the neutral rate," said the Greek central bank governor on Thursday. "This is an illusory concept, but it is estimated to be around 2%."

Stournaras stated that the fourth reduction of the deposit rate this year to 3% in December was the "right response." He added that one "cannot say" whether a 50 basis point move is ruled out.

"We do not know how the market will react, or what the Federal Reserve will do," he said.

European Central Bank policymakers are preparing for the last policy meeting of the year, with investors and analysts considering another 25 basis point rate cut to be the most likely outcome after inflation slowed more than expected.