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

|By:, SA News Editor

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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