MINIMAL IMPACT: A top European Central Bank official warned Thursday that another interest rate cut might not be much help for eurozone countries in recession — because already low rates are not getting through to businesses and consumers.
LOOKING FOR HELP: A run of disappointing economic news this week has fueled market expectations that the bank will cut rates from a record low of 0.75 percent to stimulate the economy of the 17 European Union countries that use the euro.
EMPTY CUPBOARD: Joerg Asmussen, the ECB's top official for international relations, said that the "pass-through of rate cuts" would be "limited" since troubled banks are not able to send them on. He cautioned that ultra-low interest rates can take pressure off governments and banks to fix their troubles anyway.
- Politics & Government
- European Central Bank
- interest rate