ECB Cuts Rates!!!

In his first meeting in charge Mario Draghi and the ECB lowered rates by 25 basis points to 1.25%.  the move was a surprise to many economists.  That was the good news.  The bad news was the statement the Draghi said in his post meeting press conference.

“What makes you think that becoming the lender of last resort for governments is what you need to keep the euro region together?”

and

“ That is not really in the remit of the ECB. The remit of the ECB is maintaining price stability in the medium term.”

So the ECB still seems to miss the point.  They are the lender of last resort.  History has shown that central banks that don't take their role as lenders of last resort seriously have failed miserably.  Yet the ECB is still worried about price stability which is not an issue at this point.  As a matter of fact a little inflation would probably help things in Europe a bit.

Link to Bloomberg article here.