• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

ECB should keep cutting rates in small steps, Kazimir says

by December 16, 2024
written by December 16, 2024

FRANKFURT (Reuters) – The European Central Bank should continue to cut interest rates in small steps and resist the temptation of trying to prop up growth in a currency bloc that suffers largely from structural faults, Slovak policymaker Peter Kazimir said on Monday.

The ECB cut rates by 25 basis points to 3% last week but some policymakers pushed for a bigger step on the premise that growth is especially weak and inflation could even undershoot the ECB’s 2% target in the medium term.

“Maintaining a gradual, step-by-step approach through 25 basis point rate cuts continues to be the most prudent strategy,” Kazimir, an outspoken policy hawk, said in a blog post.

“A more aggressive monetary easing would require a dramatic shift in conditions to justify it,” Kazimir added.

The ECB last week lowered its growth forecast for the 20- nation euro zone and said that risks were still skewed to even more negative outcomes, especially if the new U.S. administration introduces trade barriers.

But Kazimir said laxer monetary policy was merely a band aid for deeper structural faults and not a real solution.

“Lower interest rates can provide breathing space, but they cannot replace the vital reforms,” he said. “Europe’s economic malaise is largely structural and demands solutions that extend beyond the remit of monetary policy.”

“We must resist the temptation to overreact to short-term pressures,” Kazimir said.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Fed meeting, Bitcoin record, Chinese economic data – what’s moving markets
next post
ECB is confident that inflation will converge to target in 2025, De Guindos says

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • Earnings call: Neogen reports Q1 revenue decline, maintains 2025 guidance
    • Canada gov’t could avoid confidence vote with slim mini budget, says source

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy