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ECB has scope to cut rates - Eurogroup’s Juncker

  The European Central Bank has room to cut interest rates further, the chairman of euro zone finance ministers, Jean-Claude Juncker, said on Friday.

Juncker told reporters that data earlier on Friday showing euro zone annual inflation falling to 1.1% in January from 1.6% in December should make the European Central Bank less worried about price growth. “I am of the opinion as the ECB and (ECB President) Jean-Claude Trichet have said themselves that the ECB still has scope for reductions, but I understand those who say that they are against moving towards a zero rate,” he said.

Asked whether he thought the ECB would lower rates in March as widely expected or in February, Juncker said: “This bank has in a surprisingly quick rhythm reduced rates from 4.5% to 2%.” (Reuters)