ECB officials: Should be ready to cut interest rates below neutral level at any time

ChainCatcher news, according to the Financial Times, eurozone rate setters are urging economists not to focus on the so-called neutral interest rate, warning that in a region increasingly affected by weak growth and global uncertainty, this indicator "does not guide" the trend of borrowing costs well.

European Central Bank Chief Economist Lane stated that the ECB should be ready to lower borrowing costs below neutral levels at any time to boost economic growth. "We should not limit our freedom of action because of a theoretical concept," he said, adding that the ECB should maintain an "open mind" regarding the final level of interest rates.