MW: Majority of ECB council open to rate cut: report
By William L. Watts
FRANKFURT (MarketWatch) -- The euro extended a loss versus the dollar Friday after a news report said a majority of European Central Bank Governing Council members were open to a cut in the central bank's key lending rate when they met a day earlier. The euro EURUSD -0.4405% slipped as low as $1.2896 and changed hands in recent action at $1.2906, compared with $1.2968 in late North American trade Thursday. Bloomberg, citing three unnamed officials, reported that a majority of ECB policy makers were open to a cut in the lending rate and that a reduction is possible early next year if the euro-zone economy doesn't pick up. Rates were left on hold due to worries a cut could send a negative signal in combination with sharp downward revisions in ECB staff forecasts, the report said. ECB President Mario Draghi on Thursday said the committee had a "wide discussion" on interest rates, but that the "prevailing consensus" was to leave them unchanged.
