Euro zone inflation is not undershooting the European Central Bank’s target of just below 2 percent so much that it should use its heaviest artillery to try to boost prices, ECB Executive Board member Benoit Coeure said.
Coeure told a journalist club on Monday night that the ECB was ready to act, but that the euro zone was not edging towards a dangerous fall in prices. His comments were embargoed until Tuesday.
The ECB cut its interest rates to a record low of 0.25 percent last month after October inflation fell to an alarmingly low 0.7 percent, increasing fears the currency bloc would see a spiral of persistently falling prices.
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