RTRS: ECB's Trichet plays down chance of zero rates
European Central Bank President Jean-Claude Trichet reiterated there is more room for interest rate cuts but added that the bank was not thinking about adopting a zero rate policy.
The central banks of both the United States and Japan have cut their policy rates close to zero while ECB rates now stand at 2 percent following a half a percentage point cut on Thursday.
"To the question 'is 2 percent the lowest level that you will attain', I say no," Trichet told Japan's public broadcaster NHK in an interview aired on Friday and conducted after the ECB cut rates.
"If you ask me the question 'if you go to zero', I would say no," he said.
The ECB's rate cut on Thursday was the fourth cut in as many months and took rates to match the lowest levels in the 10-year history of the ECB. [ID:nLF501185]
Trichet's remarks to NHK were similar to ones he made at a news conference following the rate cut, where Trichet said 2 percent was not a floor for ECB rates.
