Bank of Estonia Governor, and member of the European Central Bank Governing Council, Madis Müller, spoke in an interview.
Bloomberg (gated) carried the report.
In brief:
- Can’t rule out further reductions in rates
- Must be cautious as there’s no clear need yet to actively support economic growth
- Muller said he think interest rates are already low enough, they are not holding back economic recovery
- Said that while further cuts might be justified, its not obvious that significantly lower rates are necessary
- Muller noted economic challenges include international trade and tariff confusion, says these will slow economic growth in the eurozone and may ease price pressure
- On the other hand, he noted the potential for inflation pressures from fiscal policy in Europe after governments promised to rasie defense outlays
