ECB rate cut to provide only a little boost

The ECB’s unexpected interest rate cut last week was certainly a pleasant surprise and suggests that it is not writing off the potential threat of deflation. But there was little in the press conference to suggest that this marks the start of a more concerted period of action. And even if the ECB does loosen monetary policy in the next month or two, it is unlikely to resolve the fundamental economic problems that the euro-zone still faces.