ECB can cut rates further: Report

BERLIN: The European Central Bank has "a certain leeway" when it comes to cutting interest rates, a key member of the ECB's governing council said Friday, suggesting rates would fall further.

"Regarding monetary policy, I still think there is a certain amount of leeway we can take advantage of," Axel Weber, who is also governor of the German central bank, said in a speech here.

The ECB slashed interest rates by 50 basis points to 1.50 percent in March, its lowest level ever, as it tries to pull the eurozone economy out of its first recession ever.

Since October, the ECB has cut rates by a whopping 275 basis points, Weber pointed out.

He declined to say where he thought interest rates would end up but dropped a reference to a "floor" of one percent that he has mentioned frequently in recent speeches.