BERLIN May 22 An interest rate cut by the
European Central Bank would have little impact on the German
economy or the euro's strength in foreign exchange markets, the
head of the Federation of German Industry (BDI) lobby, Ulrich
Grillo, said on Thursday.
"I don't think there would be any big impact more on the
issue of whether the German economy would profit substantially
if interest rates, that have already been at historic lows for a
long time, were lowered further," Grillo said.
"I don't think that a further rate cut from 0.25 percent to
0.15 percent or even to 0 percent would open up anything
further," said Grillo. "What's important is that we don't have
any deflationary trends emerging. But I don't see that as the
biggest risk out there."
He added: "I also don't think any substantial change in
interest rates would have any impact on the euro's exchange
(Reporting by Annika Breidthardt, writing by Stephen Brown and