ECB’s Christian Noyer speaking on French RTL radio, has said there are some tentative signs the economy had become “less bad” in recent weeks, but that the situation was still very unclear.
The official does not see deflation as a big risk and feels there is a small amount of room for a rate cut, saying “I would say today, exactly like our President Jean Claude Trichet, that it seems there is a margin for a cut in all our key interest rates but that the margin is not very big today.”
Noyer declined to comment on whether he thought the ECB’s main refinancing rate, currently at 1.25%, could go below 1%.
