- Julian Callow, chief European economist at Barclay's Capital
European central bank cut its benchmark rate by 25 basis points to a record low of 0.75 per cent on Thursday to ease borrowing costs for struggling euro zone banks. It also lowered deposit rates to zero from 0.25 per cent.
"The impact of decision [rate cut] on the euro area will not be large" and "there is now little left for the ECB to do in terms of lowering interest rates," said Julian Callow, chief European economist at Barclay's Capital in London.
"If the economy does not turn around during the second half, the Governing Council will have to address the case for outright large-scale asset purchases."
European stocks extended losses the same day. The Stoxx Europe 600 Index slid 0.16 per cent to 256.93. Germany's DAX Index erased 0.45 per cent and France's CAC 40 Index declined 1.17 per cent.
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