FRANKFURT: The European Central Bank is ready to take “decisive action if required” should inflation risk becoming entrenched below the ECB’s target of just under two percent, Executive Board member Benoit Coeure said.
The ECB left interest rates unchanged at record lows earlier this month despite inflation slowing to 0.7 percent in January — far below the bank’s target of just below two percent. The ECB opted to wait until its March meeting to assess more information before deciding whether to take fresh policy action.
“The governing council’s assumption is that the rate of inflation will gradually increase towards our target of close to, but below, two percent,” Coeure told Slovenian newspaper Delo. “We are, however, closer to the area where inflation expectations could be altered and create downside risks to price stability.” Reuters
