BRUSSELS, March 7 (Reuters) - Cutting interest rates in the euro zone will not solve the financial crisis though there are some signs that lending among banks is improving, a European Central Bank executive board member said on Saturday.
'The financial crisis cannot be solved with interest rate cuts. An excessively low interest rate level can even be conterproductive,' Juergen Stark told Luxembourg newspaper Tageblatt in interview made available to the media on Saturday.
The ECB cut its main interest rate by 50 basis points to a record low of 1.5 percent on Thursday.
(Reporting by Huw Jones and Dave Graham, editing by.....) Keywords: ECB/STARK (Reuters messaging: huw.jones.reuters.com@reuters.net; + 32 2 287 6817; huw.jones@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'The financial crisis cannot be solved with interest rate cuts. An excessively low interest rate level can even be conterproductive,' Juergen Stark told Luxembourg newspaper Tageblatt in interview made available to the media on Saturday.
The ECB cut its main interest rate by 50 basis points to a record low of 1.5 percent on Thursday.
(Reporting by Huw Jones and Dave Graham, editing by.....) Keywords: ECB/STARK (Reuters messaging: huw.jones.reuters.com@reuters.net; + 32 2 287 6817; huw.jones@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.