Weidmann Says ECB Would Only Cut Rates If Data Worsen
They would rather cut their own hand than rates now when they have the majority enslaved with loans
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European Central Bank Governing Council member Jens Weidmann said the bank would only cut interest rates if economic data worsen.
“We didn’t change interest rates at our last meeting as they are currently appropriate and in accordance with our assessment of economic developments, price stability and our monetary analysis,” Weidmann, who heads Germany’s Bundesbank, said today at a press conference in Washington. “Of course, we will reassess the adequacy of the rates if the data change.”
The euro rose after Weidmann spoke, climbing almost half a cent to $1.3130.
The ECB left its benchmark rate unchanged at a record low of 0.75 percent on April 4. At the same time, with doubts growing about the central bank’s forecast for an economic recovery later this year, President Mario Draghi signalled policy makers are looking at a range of measures, including lower rates.
“We shouldn’t expect too much” from a potential rate cut, Weidmann said today. “Monetary policy will not be able to solve structural problems in the euro area.”
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