No Need For Further Interest Rate Cut, ECB's Coeure Says

SmartForexNews

MT5-Policy makers at the European Central Bank (ECB) are unlikely to cut interest rates further, given the high inflation rate and improvement in euro-area's economic outlook, European Central Bank Executive Board member Benoit Coeure said Sunday.

Speaking to reporters after attending a conference on the Palestinian economy, Coeure said that the jury is still open whether there should be another rate cut.

"It is not absolutely obvious that another rate cut would be necessary in the light of recent economic indicators and in light of inflation developments."

Coeure said economic growth in the Eurozone would be 'very week' this year and next, and inflation will be easing at a relatively slow pace.

"There has to be a detailed analysis on how further cuts in the deposit rate would spill over into different market segments and whether the functioning of money markets is compatible with negative rates," Coeure said.

The central bank at its latest rate-setting session had kept the policy rate unchanged at a record low of 0.75 percent for the second time. The rate was reduced by a quarter point in July.

Published: 2012-09-23 14:14:00 UTC+00 9 hours, 1 min. ago