ECB's Mersch says has options to halt rise in money rates
DUBAI, Sept 16
DUBAI, Sept 16 (Reuters) - The European Central Bank has not yet started exiting its ultra-easy monetary policy so it does not want money markets to become too exuberant, ECB Executive Board member Yves Mersch said on Monday.
Speaking at a banking conference in the United Arab Emirates, Mersch said the ECB still had options available to halt rises in bank-to-bank borrowing costs, though he did not specify them.
He was referring to a recent rise in short-term money market rates in the euro zone, which ECB policymakers have called unwarranted.
When central banks reduce excess liquidity, they must avoid excessive volatility during the process, Mersch added. (Reporting by Martin Dokoupil; Writing by Andrew Torchia)
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