BERLIN: European Central Bank President Mario Draghi sees no urgent need to cut the euro zone’s main interest rate further and no signs of deflation, he said in an interview published yesterday.
While the eurozone crisis has not yet been beaten, he added, there were many encouraging signs, including economic recoveries in some countries, easing trade imbalances and shrinking budget deficits.
“That is more than we would have expected last year,” he told German news magazine Spiegel.
Asked about any further cuts to interest rates after the ECB cut its main refinancing rate to 0.25 percent in November, Draghi said: “at the moment we don’t see a need for any urgent action.” There could be “no talk of deflation” in the euro zone, he added.
Draghi expressed satisfaction that the fears and warnings of some German economists about his monetary policies had proved unfounded.
Reuters
