Speculation of ECB cut builds on Mersch comments

Comments by Yves Mersch, a member of the European Central Bank's (ECB) governing council, have fuelled speculation that the central bank is set to adopt a more dovish monetary policy stance.

Mersch, the governor of the Central Bank of Luxembourg, told Bloomberg: "We certainly have downside risks to growth." He added that inflationary pressures could also be mitigated by a strong euro, a fall in oil prices, a slowdown in the United States and tighter credit conditions.

Mersch's comments contra

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