Central Banks
ECB’s Centeno Says Cutting Rates May Help Prevent a Recession
- Price stability needs financial stability, central banker says
- Euro region currently in stagnation, not a slump, he says
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Cutting European Central Bank borrowing costs could help prevent a euro-area recession, according to Governing Council member Mario Centeno.
“At the moment we aren’t talking about recession in the euro area — the region has been stagnant in economic terms for practically a year and a half,” he said on Monday. “Probably when the decline in interest rates starts to materialize, it will be one of the factors that can help avoid the appearance of a recession.”