The European Central Bank is “ready to act” if need be to aid the euro zone economy and recent signs of market stabilization mean that its interest rates are becoming a more effective tool again.
Speaking at a farewell conference for Bank of Israel Governor Stanley Fischer in Jerusalem, Draghi said there were numerous measures the ECB could and would deploy if needed.
The euro fell after his comments, which broadly reiterated the bank’s commitment at last month’s policy meeting to take action if necessary.
Draghi said the calming effect of the ECB’s government bond purchase programme on markets as well as economic reform had eased the emergency settings which have undermined its ability to affect costs of borrowing for companies and households.
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