DUBROVNIK, Croatia, June 13 European Central
Bank Executive Board member Benoit Coeure said on Friday that
there was no need for the ECB to launch large-scale asset
purchases, because the euro zone is not in deflation.
Speaking to reporters on the sidelines of an economic
conference in Dubrovnik, Coeure said the central bank would now
assess the impact of its policy decisions taken last week, which
included interest rate cuts and measures to spur lending.
ECB President Mario Draghi said after the policy meeting
that the ECB was not done yet and could act again if needed,
whetting markets' appetite for more action. The only real option
left in the ECB's toolbox is seen to be a major asset-buying
plan, also known as quantitative easing.
Coeure dampened expectations that this could be used soon.
"The picture is very clear," Coeure told reporters.
"It (quantitative easing) is not needed now, because we do
not see deflation in the euro zone and we have a deep sense that
the measures we decided last week are appropriate to face the
prospects of low inflation that we are facing today," he said.
"We would be ready to act if the action last week would not
be effective in pushing inflation back (towards our target)."
Coeure added that if the euro zone was still facing an
extended period of low inflation later on, "then we would stand
ready to do more, but that's really not a discussion that we are
(Reporting by Marja Novak; writing by Eva Taylor; Editing by