The European Central Bank (ECB) was ready to cut interest rates or to pump more money into the euro zone economy if necessary, the bank said after its monthly policy meeting yesterday.
As widely expected, the bank left its key interest rate unchanged at 0.5 percent and ECB president Mario Draghi reaffirmed the bank’s commitment to keeping interest rates low for a prolonged period.
Draghi said the policymaking governing council had discussed a possible rate cut, partly on concern about money market rates and the uncertain, “very green” nature of the recovery.
Draghi said some governors argued that improving economic data made such a discussion unjustified but others said the recovery was too fragile to rule out such a move.
An ECB statement said the bank would remain “particularly attentive” to the implications for its monetary policy stance of shrinking excess liquidity in the euro zone.