The European Central Bank (ECB) should show that it is ready to tackle the strong euro as well as stimulating growth when it meets later this week to decide its next monetary policy move, Italy’s economy and finance minister Fabrizio Saccomanni told CNBC on Tuesday.
Analysts expect the ECB to announce a further rate cut or some kind of further liquidity provision when it meets on Thursday in order to stimulate euro zone growth and consumer confidence.
Although an injection of liquidity would be effective, Saccomanni told CNBC in an interview in London on Tuesday, he wanted to see the central bank tackle the strength of the euro which was damaging Italy’s hopes of an export-led recovery.
“What could be more effective [than an injection of liquidity] are some measures that would signal that the stance of monetary policy in Europe is also taking into account the fact that the euro is becoming very strong,” he told CNBC.
Saccomanni’s comments come against a backdrop of deflationary concerns and a single currency that has risen 2.8 percent against the dollar since the U.S. Federal Reserve decided to delay the tapering of its asset purchase program on September 18.