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ECB's Bini Smaghi Says Lower Rates Would Mean Higher Inflation |
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European Economy |
Written by CEP News |
Aug 27 08 11:20 GMT |
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(CEP News) - Speaking in an interview with Conservatori Contemporanei, European Central Bank Governing Council member Lorenzo Bini Smaghi said a rate cut by the ECB would have an upward effect on inflation.
"If the central bank decided to stimulate the economy by lowering interest rates this would have the effect of increasing inflation," he said. The central banker went on to argue that bringing inflation back to 2.0% is in the best interest of the euro zone's economies. By Erik Kevin Franco,
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, edited by Nancy Girgis,
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