ECBs must be cautious about future moves to lower bank interest
rates. Because if bank interest rates continue to be cut in the eurozone,
inflation could start rising again for two reasons.
The first is to increase
the borrowing rate of companies and individuals in society.
Second, because
further cuts in bank interest rates will increase the likelihood of the euro
falling against the US dollar and other currencies, causing imported goods to
rise in price and inflation to return to the European economy.
Dr. Kamaran Qader Yaqub,
Financial Consultant at
Investment Spot company.
