December 19, 2024
European Central Bank member Christodoulos Patsalides said on Thursday he favoured a gradual and balanced rate cut, stressing that he did not expect a prolonged recession or inflation to fall below the bank's target.
Patsalides explained that if a decision is made to cut interest rates by 50 basis points, expectations must be based on data indicating that inflation will fall below the target level.
The ECB member also stressed that he does not see the need to cut interest rates below the neutral rate at the present time, noting that the weakness of the euro is not causing inflationary pressures on the economy.
The European Central Bank had earlier decided to cut interest rates at a pace consistent with market expectations, by 25 basis points for the fourth time in a row, bringing the interest rate on main refinancing operations to 3.15%, after the bank had decided to cut the main interest rates in the eurozone at the last meeting to 3.40%, while it also cut the interest rate on deposits by 25 basis points to 3.00%. Read also:
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