The possibility of an interest rate cut by the European Central Bank cannot be ruled out. This was underlined by Ewald Nowotny, a member of the Frankfurt board and governor of the Austrian central bank. “The ECB is not committing upfront and a rate cut cannot be ruled out. It all depends on the next developments”.
On the other hand, his Luxembourg colleague Yves Mersch had previously stated that the expectations of a 50 points rate cut are not reality. Nowotny then added that the ECB "could further revise downwards the growth forecasts indicated at the beginning of the month" and on Greece he explained that "default is not in the scenario of either the Greek authorities or the ECB".
