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Draghi: Interest rate cut due to economic slowdown in Eurozone core
FXstreet.com (Barcelona) - ECB president Mario Draghi, who has been awarded an honorary degree from the LUISS University of Rome today, spoke afterwards about the central bank’s decision to cut the main refinancing rate to 0.5% last week.
The ECB head explained that the reduction had been carried out due to the economic slowdown which now affects also the core Eurozone countries.
He said that Eurozone governments should “mitigate the impact of austerity on growth” and stressed the dangers connected with elevated youth unemployment in the area.
Mario Draghi refrained from commenting on the possibility of introducing negative interest rates.
