Mark Hewlett, Managing Partner of Anello Asset Management, on the ECB’s decision to cut interest rates…

I hope this isn't the start of a more market reactionary ECB. Trichet kept the focus on price stability and independence from the Markets and Governments. The press conference after the announcement did something to reassure that the ECB will not throw unlimited amounts of money at the problems Europe is facing, but it would be easy to undo the good work to date to ensure the currency is sound over the longer term, regardless of the poor political decisions and which countries are left using the Euro in the future.

Price action over the next few sessions may be to reward this seemingly doveish move but let's be honest who's borrowing apart from governments at the moment and aren't rates low enough?