LJUBLJANA Jan 31 Central banks have tools
available to lift low inflation back to target even when
interest rates are at zero, European Central Bank Executive
Board member Benoit Coeure said on Friday.
Euro zone annual inflation slowed to 0.7 percent in January,
well below the ECB's target of just below 2 percent, data showed
The ECB's main interest rate is at 0.25 percent and the
central bank has assured it still has room to cut rates, if
"There are monetary policy instruments that could be used in
the event of downward risks to medium-term price stability, even
if the nominal interest rate is constrained by the zero lower
bound," Coeure said in the text of a speech to be given at
He did not specify the tools that could be used. The ECB
meets on Thursday.
(Reporting by Zoran Radosavljevic, writing by Sakari Suoninen;
Editing by Toby Chopra)