The Financial Times is out with an editorial saying the European Central Bank should cut rates next week.
The ECB has done little to stop inflation undershooting its target of close to (but below) 2 per cent. A rate cut in May and a promise to keep monetary policy loose until growth returns was all Frankfurt had to offer. When the ECB’s governing council meets next week, it should immediately cut its policy rate from 0.5 to 0.25 per cent. A new round of cheap loans to the banks – perhaps linked …
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