ECB - Governing Board apparently discussing another rate cut

After the ECB chairman Mario Draghi has already announced in the press conference after the last Governing Board meeting that the main interest in the euro zone will long remain at the current low level, is today reported that it respect during the board meeting heated discussions has been a further reduction in interest rates. According to press reports are part of the Executive Board, to which the chairman Mario Draghi was gone with the demand for a rate cut in the session.

This demand was, mainly from the northern members of the Euro zone, vigorously rejected. Especially the German Bundesbank President Jens Weidemann referred to the major risks that would arise from a further reduction in interest rates. He stressed that the pressure on the countries of the euro zone crisis, continue to drive the reforms of its own economic policy ahead, must be maintained. A further reduction in interest rates would seriously jeopardize this. Ultimately, the opponents of the rate cut prevailed during the meeting and maintaining the interest rate of 0.50% was adopted unanimously.

The discussion of the further cheapening of funding, all the way up to the Executive Board of the ECB, could ensure that the euro is still in the markets in the near future under pressure.