Reuters reporting comments from ECB boss Mario Draghi in an interview with Il Sole 24 Ore published this morning
- ECB is ready to do whatever it takes to keep mid-term inflation target on course
"If we are convinced our medium-term inflation target is at risk, we will take all the actions necessary.We will see if further stimulus is needed. The question is open."
He said inflation in the Eurozone was expected to remain close to zero, if not negative, at least until the beginning of next year.
"Starting from the middle of next year and through all 2017, thanks also to the delayed effect of exchange rate depreciation, we expect inflation to gradually increase"
Asked about what other monetary tools the ECB could use, Draghi said the bank already had an impressive set of monetary policy instruments at its disposal.
"It is however too early to say... 'this is the catalogue' and that there are no more"
In reply to a question on whether a cut in the deposit rate was a tool that could be used together with changes to quantitative easing policies, Draghi said it was "premature to make this evaluation".
He said there was no direct link between what the ECB did and what the U.S. Federal Reserve did.
Draghi backing up his comments made at the last ECB meeting and this can only add pressure to the already wobbling euro even if he doesn't have the full backing of his governing council
Reuters has more here
Super Mario ready to turn the taps on again
