Draghi: Rates may be cut back

ECB president Mario Draghi has signalled that policymakers may be open to another interest rate cut if the economic outlook warrants it.

“We have to look at what the situation is, the data and the developments, and then we will make up our minds on the governing council what to do,” he told politicians in Brussels when asked if the central bank could cut rates again. While the ECB never pre-commits, it will “do everything to maintain price stability — from both sides — in the euro area”.

He said EU states were increasingly making the kind of changes necessary to bring their economies into line with the eurozone’s need to prevent major imbalances and generate sustainable growth.