The European Central Bank insisted today that it will be willing to cut interest rates even further if necessary to help stimulate economic recovery in the Eurozone.
Addressing a news conference after the ECB held rates at a record low 0.75%, ECB president Mario Draghi said discussion at the monthly meeting had been extensive and the consensus was to hold fire.
He added though that they were “ready to act” because there was no certainty that the Eurozone economy would pick up.
“In the coming weeks, we will monitor very closely all the incoming information on economic and monetary developments, and assess the impact on the outlook for price stability,” he said.
Some economists are now predicting a cut in rates to 0.5% in May. This would save tracker mortgage holders around €15 a month on every €100,000 borrowed.