Weak Eurozone Outlook, Easing Oil Prices Justify ECB Rate Cut, Says Weidmann

Weak Eurozone Outlook, Easing Oil Prices Justify ECB Rate Cut, Says Weidmann


Deteriorating economic outlook and declining oil prices justify the latest interest rate reduction by the European Central Bank, Governing Council member Jens Weidmann said in an interview.
Institutions like International Monetary Fund rarely grasp the complexity of the euro area crisis, Weidmann, who also heads Bundesbank told Het Financieele Dagblad.
In a separate interview with Germany's Boersen-Zeitung, Weidmann said he would prefer that the IMF respect more the institutional features of the Eurozone when making assessments on the role of monetary policy.
The ECB on July 5 slashed the main refinancing rate by 25 basis points to 0.75 percent. The central bank has never before cut the rate below 1 percent.

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