Draghi: Surprise ECB Interest Rate Cut Was Unanimous Decision

FRANKFURT (MNI) – The surprise decision of the European Central
Bank to cut key interest rates on Thursday by 25 basis points was taken
unanimously by the Governing Council, said ECB President Mario Draghi.

The cut was justified by signs of weakening of demand and eroding
confidence, namely in the PMI polls, new industry orders and analysts’
forecasts, Draghi explained to journalists, adding that economy appeared
to be heading toward a “mild recession”.

Weaker economic activity should also dampen price pressures,
assuring that headline inflation will fall below 2% next year and remain
in line with price stability over the policy-relevant horizon, he said.

[TOPICS: M$$EC$,MT$$$$,M$X$$$,MGX$$$,M$$CR$]