ECB's Draghi: No immediate need for more rate cuts

European Central Bank President Mario Draghi sees "no immediate need" to cut the bank's main interest rate further.

While the eurozone crisis "isn't over," Draghi told Der Spiegel, "there are many encouraging signs." These include economic recovery in some countries, lower trade imbalances and falling budget deficits.

Draghi's comments come after the ECB reduced rates by a quarter of a point to a record low of 0.25% last month and cautioned that the eurozone could face a "prolonged period" of low inflation. However, Draghi said in the interview that there are no signs of deflation. "We don't have a situation as in Japan," he said.

Bundesbank President Jens Weidmann has said that the "calm" in the financial markets could be deceiving. "Subdued price pressure shouldn't be a license for arbitrary monetary-policy easing," Weidmann said.


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Comments (6)
  • DeepValueLover
    , contributor
    Comments (11342) | Send Message
    Deflation is a false boogeyman.


    Lower prices are good for consumers.
    29 Dec 2013, 07:34 AM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1754) | Send Message
    Practically speaking, I don't see a difference between 0% and 0.25%.
    29 Dec 2013, 12:14 PM Reply Like
  • Papa of Four
    , contributor
    Comments (752) | Send Message
    There is no difference in real terms between 0% and .25%. The whole idea is that you create jobs. DeepValueLover, deflation is not the boogeyman, a lack of employment is. This is why I found your comments on the 1.3 million loosing benefits disturbing. Again I would suggest you read my most recent instablog on the topic and please comment to show me the error of my ways!
    Without the little guys earning a crust your piece of the pie will go stale. The fact that you ignore this dose not change the facts. If you leave veg in your fridge and just ignore it, eventually it is just rotten. There is no cat in this equation just life. Whether or not you choose to observe what is happening does not effect the result.(thought the cat needed more explanation)


    Happy holidays


    29 Dec 2013, 08:44 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11342) | Send Message
    O.K., Papa of Four, since you brought it up:


    Where is the line EXACTLY between an EMERGENCY safety net program and taking advantage of the system by kinda, sorta looking for work?


    IMHO, that line is WELL short of TWO years!


    Maybe if this were 1934 Oklahoma but it, of course, is not.
    30 Dec 2013, 11:38 AM Reply Like
  • Bioalchemy
    , contributor
    Comments (178) | Send Message
    Europe was, is, and will be a joke.
    30 Dec 2013, 07:22 AM Reply Like
  • june1234
    , contributor
    Comments (4480) | Send Message
    With rates at .25% not much left to cut
    30 Dec 2013, 09:46 AM Reply Like
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