FRANKFURT, Germany (AP) — A top European Central Bank official warned Thursday that another interest rate cut might not be much help for eurozone countries in recession — because already low rates are not getting through to businesses and consumers.
Joerg Asmussen, the bank’s top official for international relations, said that the “pass-through of rate cuts” would be “limited” since troubled banks are not able to send them on. Meanwhile, he cautioned that ultra-low interest rates can take pressure off governments and banks to fix their troubles.
Recommended Stories
Print subscriber? Click here to login/register your account
Digital subscriber? Click here to login/register your account.