ECB's Wellink: ECB should discuss rates below 1 pct -MNSI

Published: 26 Apr 2009 22:59:31 PST

FRANKFURT, April 27 - The European Central Bank should discuss lowering interest rates below 1 percent, ECB Governing Council member Nout Wellink was quoted as saying.

When asked by Market News International if the main refinancing rate should go below 1 percent, Wellink said: "This is part of a discussion we should have in the Governing Council. Of course that should be discussed."

But he did not say whether he himself supported lowering the rate below 1 percent.

The ECB's main refinancing rate is at 1.25 percent, and the bank is expected to cut it to 1 percent next month. [ECB/INT] Some policymakers, including Governing Council member Axel Weber have said they see 1 percent as the floor for the refinancing rate.

Wellink also told Market News the amount of liquidity in the market was a worry, and that central banks should think of exit strategies when the economy improves.