Quaden says ECB rates could come lower

Reducing interest is no longer excluded by the ECB, Belgian central banker Quaden says. Economic prospects have weakened sharply, particularly in the last weeks, he says. Quaden says he had not anticipated how bad the financial crisis would be. he advocates loosening European budget rules (as do I).

Traders are unimpressed by the lack of action by European finance ministers, helping undermine EUR/USD which has fallen 140 pips in the last two hours.