8 Apr 2014
Buba's Dombret: ECB has tools to counter low inflation
FXStreet (Łódź) - Deutsche Bundesbank Executive board member Andreas Dombret said on Tuesday that the ECB has the necessary tools to counter low inflation at its disposition and that it should use them if deflationary pressures increase. It should however have in mind the possible implications of keeping rates low for an extended period of time, the Buba top official stressed.
“The Eurozone monetary policy is already very accommodative,” Dombret pointed out.
Speaking ahead of a series of meetings between G20 countries and the IMF later this week, Dombret said that the organization's recommendations on how the ECB should proceed were taken into consideration and noted that the central bank was closely watching inflation developments.
He added that other topics to be discussed at the meetings would be how could global growth be affected by current geopolitical tensions or by the US Fed's monetary policy course. As far as the situation in Ukraine is concerned, Dombret expressed satisfaction with Ukraine's readiness to implement reforms in exchange for the bailout.
"These are the key prerequisites for economic stabilization of the country and for the IMF to assist Ukraine," he said.
“The Eurozone monetary policy is already very accommodative,” Dombret pointed out.
Speaking ahead of a series of meetings between G20 countries and the IMF later this week, Dombret said that the organization's recommendations on how the ECB should proceed were taken into consideration and noted that the central bank was closely watching inflation developments.
He added that other topics to be discussed at the meetings would be how could global growth be affected by current geopolitical tensions or by the US Fed's monetary policy course. As far as the situation in Ukraine is concerned, Dombret expressed satisfaction with Ukraine's readiness to implement reforms in exchange for the bailout.
"These are the key prerequisites for economic stabilization of the country and for the IMF to assist Ukraine," he said.