Draghi hints at rate cut in June

EUROPEAN Central Bank (ECB) head Mario Draghi dropped further hints yesterday that the institution could trim interest rates again, reducing them to negative levels as soon as next week.

Draghi also said that a “prolonged downward departure of inflation and/or inflation expectations” could push the ECB towards a policy of full-scale quantitative easing. “There is no debate about our goal, which is to return inflation towards two per cent in the medium term,” he said.