The European Central Bank has achieved a “soft landing” by bringing inflation back to 2% while maintaining economic resilience, said Yannis Stournaras, a member of the European Central Bank’s governing council.

“This achievement is inextricably linked to building the ECB’s credibility – a valuable asset – thanks to which, even during the recent surge in inflation, long-term inflation expectations have remained very close to 2%,” the Greek official said during his speech at an honorary event at EKPA in Athens.

Interest rate cuts and inflation moderation “promote an environment conducive to investment, sustainable growth and financial stability,” the BoE governor said.

ECB officials are satisfied with the pace of consumer price growth and the level of borrowing costs, with a majority saying they are not prepared to change monetary policy unless there is a significant upheaval in the economic outlook.

Stournaras believes the global economy is in a transitional phase that could allow Europe to strengthen the euro’s role as a reserve currency.

“Increased demand for European debt securities can enhance the liquidity and financing capabilities of the European economy, supporting productive investment and long-term competitiveness,” he said.

However, this will not happen automatically and will require measures such as “completing the banking union, creating a fully functioning capital markets union, removing all the significant barriers that still exist to intra-EU trade and increasing investment in technology, defence and green growth,” Stournaras said.