The European Central Bank is ready to cut interest rates again if the economic situation in euro area continues to weaken, bank's Executive Board member Benoit Coeure said in a radio interview on Saturday.
"We will cut further if indicators confirm situation is deteriorating," reports quoted him as saying during an interview to France Inter.
Last week, the central bank reduced the key refinancing rate by a quarter point to a record low of 0.50 percent. Prior to this move, the bank held the rate steady at 0.75 percent for nine consecutive months.
In its latest economic forecasts released on May 3, the European Commission said that euro area economy may contract 0.4 percent this year, more than 0.3 percent contraction predicted in February.
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