The European Central Bank should cut interest rates only gradually and not lower them to a level that stimulates growth since that would not resolve the economy's deep structural faults, ECB board member Isabel Schnabel told Bloomberg.

The eurozone isn’t at imminent risk of recession despite a softening labor market and signs of contraction in business activity, the European Central Bank’s Isabel Schnabel said in an interview Wednesday.

The European Central Bank needs to be wary of cutting interest rates too far as borrowing costs are already near a level that no longer restrains the economy and going lower could backfire, according to Executive Board member Isabel Schnabel.