JERUSALEM, June 18 European Central Bank
President Mario Draghi flagged the central bank's readiness to
act as recent signs of stabilisation in the euro zone mean that
its interest rates are a more effective tool again.
Speaking at a farewell conference for Bank of Israel
Governor Stanley Fischer in Jerusalem, Draghi said there were
numerous measures the ECB could and would deploy if needed,
saying the ECB stood "ready to act".
Some may have unintended consequences, but this did not mean
that they should not be used, Draghi said.
"Monetary policy has regained steering capacity, which had
become lost for large parts of the euro area in mid-2012. This
is an important positive development," Draghi said in the text
of a speech.
"I do not think that we are materially challenged in our
ability to deliver our objective of price stability by the low
level of interest rates," Draghi said.
"There are numerous other measures - standard interest rate
policy and non-standard measures - that we can deploy and that
we will deploy if circumstances warrant," he added.
"We will look with an open mind at these measures that are
especially effective in our institutional setup and that fall
within our mandate," he added.