ECB Rate Cut Effectiveness Limited, Still Possible If Backed By Data: Asmussen

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The European Central Bank could cut interest rates further, if data justified such a move, but the effectiveness of rate cuts is limited because they are not passed on to the economy in the same way in all parts of the euro zone, ECB board member Joerg Asmussen said.

European Central Bank (ECB) Executive Board member Joerg Asmussen

The European Central Bank could cut interest rates further, if data justified such a move, but the effectiveness of rate cuts is limited because they are not passed on to the economy in the same way in all parts of the euro zone, ECB board member Joerg Asmussen said.

Responding to a question in a panel on the sidelines of the International Monetary Fund annual spring meeting, Asmussen said ECB monetary policy was already very accommodative. The bank's main lending rate is at a record low of 0.75 percent.

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