ECB’s Coeure: Rate hike possible, in abstract, if negative rate hurts lending

In a scheduled speech on Thursday, ECB executive board member Coeure said that the central bank remains ready to adjust policy whenever required.

Key Headlines:

ECB cash facility working well, has flexibility

Elections should not weigh much in decisions

Inflation rise not yet durable, self-sustaining

No shortage of German bonds

Rate hike possible, in abstract (theory), if neg depo rate hurts lending

ECB shouldn't wait too long before taking away support

Sequence of future policy steps in guidance "not set in stone"

Credibility of forward guidance depends on its adjustment to facts