Financial Expert's Projections: If Inflation Continues to Fall Bulgaria Can Adopt the Euro in 2025
Julian Voinov, an economist and financial expert, expressed optimism regarding Bulgaria's potential adoption of the euro in 2025 or early 2026
European Central Bank (ECB) decided to slash benchmark interest to 0.15%, down from 0.25%, in a move aimed at stimulating economic growth in the Eurozone.
It also lowered the deposit rate below zero, placing it at -0.1%. This would force commercial banks to pay to lodge their money with the central bank instead of receiving any interest.
The ECB hopes such measures would encourage banks to lend to businesses and thus boost growth, the BBC reports.
Eurozone leaders have long been concerned over the sluggish pace at which GDP increases, with a slender 0.2% projected for 2014.
The threat of deflation is also looming across the euro area, with inflation value falling to 0.5% in May compared to 0.7% in April, while the ECB says it should be at 2%. The bank considers any value below 1% to be in the "danger zone".
Thursday's decision, however, was well below analysts' expectations that the European central lender could slash interest rates to 0.1% or even to zero.
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Julian Voinov, an economist and financial expert, expressed optimism regarding Bulgaria's potential adoption of the euro in 2025 or early 2026
This was stated by the Governor of the Bulgarian National Bank at the international conference "Bulgaria in the Eurozone, When?" in Sofia
Former Finance Minister Simeon Dyankov has suggested that Bulgaria's potential entry into the Eurozone may not materialize before 2026
In the initial quarter of 2024, Bulgaria's economy expanded by 0.4%, as per an expedited evaluation by the National Statistical Institute (NSI), a slight deceleration from the 0.5% growth witnessed in the final quarter of the preceding year
According to Levon Hampartzoumian, the likelihood of Bulgaria joining the Eurozone in 2025 is very slim, as no country has ever entered during the middle of the year
According to Dimitar Radev, the Governor of the Bulgarian National Bank (BNB), Bulgaria will not meet all the requirements for joining the Eurozone by the time the convergence report is released in June
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