ECB Still Has Further Tools

People ♦ Published: November 13, 2013; 18:33 ♦ (Vindobona)

In spite of the most recent cut of the key rate by the European Central Bank (ECB) there is still some leeway downward. However, measures will affect the exchange rate of the common currency.

ECB Still Has Further Tools / Picture: ©

The European Central Bank lowered the base rate by 0.25 percent to a new record low from 0.5 percent to 0.25 percent on Thursday last week. The extremely low inflation in the Eurozone (0.7 percent in October) was the reason for this measure, as announced by the ECB in Frankfurt.

In an interview with “Wall Street Journal” on Tuesday, ECB’s chief economist Peter Praet…