ECB Draghi: No Urgent Need To Cut Rates

European Central Bank President Mario Draghi sees no urgent need to cut the euro zone’s main interest rate further and no signs of deflation, he said in an interview published on Saturday.

While the euro zone crisis has not yet been beaten, he added, there were many encouraging signs, including economic recoveries in some countries, easing trade imbalances and shrinking budget deficits.

“That is more than we would have expected last year,” he told German news magazine Spiegel.

Asked about any further cuts to interest rates after the ECB cut its main refinancing rate to 0.25 percent in November, Draghi said: “at the moment we don’t see a need for any urgent action.” There could be “no talk of deflation” in the euro zone, he added.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu