ECB Nowotny says negative deposit rate a possibility

LONDON Mon Feb 17, 2014 8:07am EST

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LONDON Feb 17 (Reuters) - A negative deposit rate is one possible tool the European Central Bank has available to it but no decision has been made so far to use it, governing council member Ewald Nowotny said on Monday.

"A negative deposit rate...is one potential element but there has been no decision and we are still in the process of discussion," Nowotny said at an event in London.

The euro zone's nascent economic recovery accelerated in the last quarter of 2013 but it still faces downside risks, mainly from turmoil in financial markets, disinflation and the slow pace of implementation of structural reforms.

"It's good news that we see improvements in the real economy and how this connects to inflation rates is something that still needs to be discussed," Nowotny added. (Reporting By Francesco Canepa and Tricia Wright; Editing by Toby Chopra)

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