ECB Member Says There is Little Room for Easing

ECB Executive Board member Sabine Lautenschlaeger said on Saturday she saw little room for further easing of monetary policy despite a further fall in euro zone inflation.

“According to the current situation, the threshold as I see it for taking further action is very high, particularly for large-scale purchasing programmes,” she said in Berlin, speaking five days ahead of the ECB’s next Monetary Policy Committee meeting.

Innovation in monetary policy was not a taboo, but must also not be an “end in itself”, she added.

The ECB has cut interest rates to practically zero and is readying more buying programmes that could include government bonds – known as quantitative easing – to ward off the threat of deflation in the euro zone.

Vice President Vitor Constancio said this week the ECB could make a decision on government bond-buying in the first quarter if the economy did not improve.

The purchase of government bonds would be viewed extremely critically in Germany.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

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.
Alfonso Esparza