ECB to tackle strong euro by cutting rates, not intervening

Jean-Claude Trichet’s expressions of concern over the strength of the euro yesterday have prompted speculation that the ECB might intervene directly in the currency markets to prevent the currency from rising significantly further. But such action is unlikely. If the ECB is really getting concerned about the euro, the more obvious solution is to cut interest rates.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.