Interest Rates ECB`s ‘Most Important’ Tool, Liikanen Tells FTD
Baku, February 16 (AZERTAC). European Central Bank Council member Erkki Liikanen said interest rates remain the ECB`s most important tool and suggested exiting the others as soon as conditions allow, Financial Times Deutschland reported.
“Interest rates are our most important instrument,” Liikanen told the newspaper in an interview. “The other measures remain only as long as they`re needed.” He added that the ECB should think about how to exit them “as soon as conditions allow,” the FTD reported.
Liikanen suggested the ECB could cut the benchmark rate below 1 percent if required, the newspaper said. If the bank needed to ease policy further as room to move on rates diminished, there would be no technical hurdles to taking that course, he told the FTD. He however added that that was “currently not on the agenda,” the newspaper said.
Liikanen also said he was satisfied with the way inflation was developing development and didn`t see a deflation risk for the euro zone, the newspaper reported.
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