Bank of Estonia Governor, and member of the European Central Bank Governing Council, Madis Müller, spoke in an interview.
Bloomberg (gated) carried the report.
In brief:
- Can’t rule out further reductions in rates
- Must be cautious as there’s no clear need yet to actively support economic growth
- Muller said he think interest rates are already low enough, they are not holding back economic recovery
- Said that while further cuts might be justified, its not obvious that significantly lower rates are necessary
- Muller noted economic challenges include international trade and tariff confusion, says these will slow economic growth in the eurozone and may ease price pressure
- On the other hand, he noted the potential for inflation pressures from fiscal policy in Europe after governments promised to rasie defense outlays
This article was written by Eamonn Sheridan at www.forexlive.com.
