March 22, 2014 / 9:02 AM / 6 years ago

Liikanen says ECB still has room to cut rates : TV

Bank of Finland Governor Erkki Liikanen arrives for a press briefing on the release of the latest issue of the Euro & talous (Euro and Economy) journal in Helsinki, Finland March 15, 2012. REUTERS/Lehtikuva/Antti Aimo-Koivisto

HELSINKI (Reuters) - The European Central Bank can still cut interest rates further from the current record-low rates, including taking its deposit rate to negative territory, Governing Council member Erkki Liikanen said on Saturday.

The ECB’s main interest rate is at 0.25 percent and the rate which it pays banks for deposits at the central bank is zero.

“The possibility that we will lower interest rates still exists,” Liikanen said in a TV interview on Finnish national broadcaster Yle.

“If we want to add instruments to monetary policy, the option of charging banks for deposits is one such toll.”

Reporting by Sakari Suoninen; editing by Andrew Roche

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