ROME, Sept 12 (Askume) – Two Italian ministers criticised the European Central Bank after it cut interest rates by 0.25 percentage points on Thursday, saying the move was not strong enough and lacked courage.
The European Central Bank reduced its deposit rate by 25 basis points to 3.50%, following an interest rate cut of the same magnitude in June, a move in line with market consensus.
“We need to be bolder,” Italian Foreign Minister Antonio Tajani told reporters. “A 25 basis point cut is too small to revive growth. Bold means a cut of at least 50 basis points.”
His comments were echoed by Industry Minister Adolfo Urso, who posted on social media platform X that the ECB had “once again disappointed expectations… we need more courage and more urgency”.
The ECB acts independently of governments.
Italy has the highest borrowing costs in the euro area and the second-highest ratio of public debt to national output in the euro area, so Italy would benefit greatly from a sharp reduction in interest rates by the European Central Bank.
Tajani also called for reform of the ECB’s founding treaty.
“Today the ECB is only concerned about fighting inflation, but that is not enough. We need a central bank that can manage money to boost growth,” he said.
Euro assets were little changed following the ECB’s move.
European Central Bank President Christine Lagarde told reporters that the probability of another interest rate cut next month is relatively high and stressed that policymakers are unlikely to have enough data to determine whether further rate cuts are appropriate.
