The European Central Bank is not being complacent about low eurozone inflation, even though it did not cut interest rates this month, one of its a board members said on Tuesday.
"We have room left to act. The deposit rate could be negative, for example," ECB executive board member Sabine Lautenschlaeger told The Wall Street Journal in an interview.
"I reject it if someone says we are complacent," said Lautenschlaeger.
Last week, the ECB held its key interest rates steady at their current all-time lows for the fourth month in a row, even though there had been some speculation of an additional rate cut in face of persistently very low inflation in the 18 countries which share the euro.
The central "refi" refinancing rate was held at 0.25 percent, and the other two rates -- the deposit and marginal lending rates -- at zero percent and 0.75 percent respectively.
"There was no strong reason to act," Lautenschlaeger said. "We're receiving some positive signals from incoming data."
Rates will stay at their current ultra low levels, or even lower, "over a longer period of time and well into the recovery," she said.
Lautenschlaeger argued that the ECB must be certain that additional monetary stimulus was required and would help the economy.
"Acting just for the sake of acting makes no sense," she said.
The European Central Bank is not being complacent about low eurozone inflation, even though it did not cut interest rates this month, one of its a board members said on Tuesday.
“We have room left to act. The deposit rate could be negative, for example,” ECB executive board member Sabine Lautenschlaeger told The Wall Street Journal in an interview.
“I reject it if someone says we are complacent,” said Lautenschlaeger.
Last week, the ECB held its key interest rates steady at their current all-time lows for the fourth month in a row, even though there had been some speculation of an additional rate cut in face of persistently very low inflation in the 18 countries which share the euro.
The central “refi” refinancing rate was held at 0.25 percent, and the other two rates — the deposit and marginal lending rates — at zero percent and 0.75 percent respectively.
“There was no strong reason to act,” Lautenschlaeger said. “We’re receiving some positive signals from incoming data.”
Rates will stay at their current ultra low levels, or even lower, “over a longer period of time and well into the recovery,” she said.
Lautenschlaeger argued that the ECB must be certain that additional monetary stimulus was required and would help the economy.
“Acting just for the sake of acting makes no sense,” she said.
