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12 Mar 2014
ECB'S Cœuré: We are ready to act if deflation emerges in the Eurozone
FXStreet (Łódź) - The second ECB speaker at the Watchers XV conference in Frankfurt was executive board member Benoit Cœuré, who pointed to the fragmentation of Eurozone financial conditions as the reason for a reduced effectiveness of the central bank's monetary policy. The banking union should fix that, he suggested.
Cœuré remarked that the ECB did not see deflation in the area, but that risks existed and that the central bank was ready to act should the need arise. He also suggested that the Eurozone banking system didn't currently need additional liquidity injection measures. The ECB policymaker stressed however that the level business lending was still insufficient.
Furthermore, Cœuré declared that “everything that the ECB has done is reversible,” adding that some of the central bank's measures have a built-in exit.
Cœuré remarked that the ECB did not see deflation in the area, but that risks existed and that the central bank was ready to act should the need arise. He also suggested that the Eurozone banking system didn't currently need additional liquidity injection measures. The ECB policymaker stressed however that the level business lending was still insufficient.
Furthermore, Cœuré declared that “everything that the ECB has done is reversible,” adding that some of the central bank's measures have a built-in exit.