FRANKFURT (AFX) - Bundesbank president Ernst Welteke said the European Central Bank may have room to cut interest rates if the euro strengthens.
Speaking to Boesen-Zeitung, Welteke said a stronger euro would limit external inflationary pressures and "possibly open the room for manoeuvre for an interest rate cut." However, he added despite the recent tentative recovery in the euro, this stage has yet to be reached. The euro is "not exorbitantly higher", he said. Welteke has in the past voiced concern that the weakness of the euro could spark inflationary pressures in the euro zone.