Draghi Signals Economy Must Worsen for ECB to Cut Rates

Mario Draghi signalled that Europe’s stuttering economy will have to get worse before he’ll consider cutting interest rates.

Even as the European Central Bank President yesterday admitted that recent economic data in the euro area has been “disappointing,” he insisted that a recovery will appear later this year. While Draghi acknowledged the Governing Council considered a rate cut, yesterday marks the third time in a row the Frankfurt-based ECB has revised its growth outlook downward without adjusting policy.