ECB’s Paramo agrues for 2% floor in ECB rates

ECB executive board member Paramo says that if rates are to move below the historic low of 2%, it must be well justified. At the same time, he sees inflation dipping below zero in some Eurozone countries. Sounds well justified to me.

The ECB is expected to take a pass on rate cuts at the Februaury meeting next week before taking a hard look at further cuts in March.

EUR/USD is retesting highs just above 1.3000 on the remarks.