ECB sees rate cut as primary tool for any potential further stimulus - Bloomberg

Eren Sengezer FXStreet

Citing three officials with direct knowledge of the talks, Bloomberg reported that the European Central Bank saw rate cuts as the primary tool for any new stimulus in case they need to boost inflation.

Officials further noted that although the timing of a rate cut was not yet clear, a Fed rate cut could cause them to consider that option if it threatens to boost the shared currency.

The EUR/USD pair, which suffered heavy losses amid President Draghi's dovish comments today, was last seen trading at 1.1195, losing 0.2% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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