European Central Bank set to reject demands for significant cut in rates - by Gary Duncan
The European Central Bank (ECB) is expected to spurn demands for a further drastic cut in interest rates this week, despite evidence that the eurozone is sliding into a brutal slump. The Frankfurt-based central bank has already lowered official eurozone rates by 1.75 percentage points, from 4.25 per cent to 2.5 per cent, between October and December, and some of its most senior officials have signalled marked reluctance to rush into further, aggressive action.
Note EU-Digest Most negative reports about the euro zone, like this TimesOnline report originate in Britain, which is in far worse shape than the euro zone as a result of being aligned with US economic policies. The ECB should be complimented for its cautious policies and one can only hope it remains on this course.Today Gabriel Stein from Lombard Investments noted on CNBC, " One should not compare the US economic situation with those of the euro zone, because the fundamentals of the euro zone are much better than those of the US Economy."
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