Inflation in the Spain and Italy is plunging at rates reminiscent of 2008-2009.
Draghi says ECB guidance allows rate cuts on
volatility: Bloomberg cited comments from ECB President Draghi,
who said that the central bank’s pledge to maintain rates at low levels
explicitly allows for cuts in lending costs if market volatility resumes.
The article noted that ECB policy makers are looking to prevent any
volatility in money market rates as it could disrupt the fragile European
recovery. It also pointed out that the ECB, unlike the BoE and the Fed,
has not linked its rate promise to any specific economic data.