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The European Central Bank (ECB) does not currently see the need for a rate cut as other instruments are better suited to support the economic recovery, ECB policymaker Martins Kazaks said on Thursday, as reported by Reuters.

Commenting on the usage of rate cuts as a policy tool, “even though this instrument has not been recalibrated recently, it is not off the table,” Kazaks said. “If circumstances change, as communicated before, the Governing Council will discuss all possible instruments, including a deposit facility rate cut.”

Market reaction

The EUR/USD pair edged slightly lower after these comments and was last seen trading at 1.2120, where it was still up 0.1% on a daily basis.