European Central Bank Governing Council member Piero Cipollone said the central bank should cut interest rates further to support the recovery in the euro zone and also counter possible new trade tariffs in the United States, according to Reuters.
The member of the European Central Bank’s Board of Directors added that the pace and extent of the reduction will depend on the data, adding: Developments remain consistent with the consumption-led recovery.
He explained: Whether the recovery will strengthen remains to be confirmed.. We should not be more restrictive than necessary to ensure timely convergence of inflation with the target.. It may be futile to tolerate an economy that constantly operates below its potential as insurance against possible inflationary shocks. in the future.
