FXstreet.com (Barcelona) - Interest rates might have not arrived at their bottom yet at 1.50% as, according to Executive Board member Lorenzo Bini Smaghi, the Central Bank is ready to reduce interest rates to zero if the situation requires it.

Bini Smaghi affirmed that The ECB cold slash rates to zero at an interview with the German economics newspaper Boersen-Zeitung: If the (economic) situation worsens, the ECB is ready to reduce rates further, even to zero, (...) That is above all the case if the economy was really threatened by sustained deflation. And in such a situation, the best approach would be to act sooner rather than later.