but of course another cut near the bone would lower interest rates and the euro rate. Exports would be cheaper and the cost of selling bonds would drop.
That would particularly please Monti and Rajoy as the markets will quickly shrug off ECB bond buying to keep the heat off interest rates.
Naturally with 11.1% general unemployment more exports should help boost jobs but considering the bulk of EZ trading is internal so what.
An interest rate cut looks like panic so a cut of even .5% is on the cards. Yes, things are that bad.
