European Central Bank President Mario Draghi spoke about the ECB’s decision to cut interest rates last to 0.5% last week. The ECB head explained that the reduction had been carried out due to the economic slowdown which now affects also the core Eurozone countries. He added that the central bank was ready to act again, should the need arise. Mario Draghi refrained from commenting on the possibility of introducing negative interest rates. He said that Eurozone governments should “mitigate the impact of austerity on growth” and stressed the dangers connected with elevated youth unemployment in the area. Draghi said Eurozone Governments should make tax reduction a priority, and called for a reduction for the obstacles to single EU labor market. The Euro fall sharply against the USD from levels around 1.3107 to a low of 1.3066.
