ECB Member Says CB Could Do More But Not Needed

December 11, 2013 Share Print 0

The European Central Bank has not ruled out further moves to help the euro zone but they are not needed for the moment, one of the bank’s top policymakers, Benoit Coeure, said on Wednesday.

In an interview with German newspaper die Zeit, Executive Board member Coeure said the ECB remained satisfied that euro zone inflation would pick back up to its preferred comfort zone of just under 2 percent.

“Looking ahead, if we come to the conclusion that this (inflation staying too far below target) remains the case, we would have to act again. This is not our scenario at this stage, however,” Coeure said.

He added there were a number of things it could do, including cutting interest rates again, charging banks who hoard cash by moving its deposit rate into negative territory, or providing additional liquidity.

“Which of these options – if any – we will use depends on the economic developments. We could also combine these measures,” Coeure added.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.