BERLIN: Sabine Lautenschlaeger Executive Board member European Central Bank (ECB) said she saw little room for further easing of monetary policy despite a further fall in euro zone inflation.
She said Innovation in monetary policy was not a taboo, but must also not be an “end in itself”, adding careful consideration of its efficiency was necessary.
Further the ECB has cut interest rates to practically zero and is readying more buying programs that could include government bonds – known as quantitative easing – to ward off the threat of deflation in the euro zone.
Vitor Constancio Vice President said this week the ECB could make a decision on government bond-buying in the first quarter if the economy did not improve.
As is the case in Britain or the United States Lautenschlaeger said the interest on national government bonds in the euro area didn’t operate as a benchmark for all further refinancing operations.
Jens Weidmann German European Central Bank policy maker said on Friday it was illusory to think central banks could increase a country’s growth potential for a sustained period of time.
