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(CEP News) Frankfurt - The European Central Bank may once again lower its main refinancing rate and announce additional non-standard measures to spur lending and support economic growth, ECB President Jean-Claude Trichet said, echoing comments made at his press conference on Thursday.
Speaking to reporters in Prague on Friday, Trichet says he does "not exclude we could in a very measured way go down from the present level". On Thursday, the ECB Governing Council decided unanimously to reduce its key policy rate by 25 basis points to 1.25%. However, economists had expected a more pronounced cut to 1.00%. The ECB also cut the rate on its marginal lending facility to 2.25%, while the deposit rate was reduced to 0.25%. Trichet said he did not expect the deposit rate to fall further, adding that it was already at "an extremely low level". Furthermore, he that inflation rates are easing further and that growth risks have materialized. This year will be a difficult one, Trichet said. Nevertheless, inflation remains "solidly anchored," Trichet said. Still, the ECB remains alert and is closely monitoring price growth in the euro zone. Trichet also told reporters that the central bank will decide on new non-standard measures at its next rate decision meeting in May. Written by CEP News European Staff,
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