The European Central Bank is ready to offer banks more long-term loans to keep money-market interest rates from rising to levels which could push inflation too low, ECB President Mario Draghi said on Monday.
Speaking at the European Parliament, he also said that credit volumes are not yet showing the effect of the improvement in banks’ funding conditions, adding that the 17-country bloc’s central bank remains committed to keeping interest rates low for as long as necessary.
Draghi, who has committed the bank to taking further action if need be to keep market interest rates low, mentioned another long-term refinancing operation (LTRO) as an option to push down money market interest rates if needed.
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