Stark: Room to cut, but speed of rate cuts cannot continue indefinitely

EUR/USD is dipping again, helped in part by comments from ECB economist Stark that given current developments, we (the ECB) has room to cut. The speed of rate rates we have had cannot continue indefinitely. He sees no medium-term risks to price stability but he does see inflation falling below zero in some European countries this year.

EUR/USD changes hands at 1.2878 down from 1.2905.