AMSTERDAM, March 13 The euro zone is unlikely to
need further unconventional monetary policy measures as
stability is returning and deflation risks in the bloc are
limited, ECB governing council member Klaas Knot said on
Knot, the governor of the Dutch central bank, repeated that
he would be in favour of dropping interest rates to below zero
if needed, but said deflation fears were not material. "I don't
think it (deflation) will get out of hand," he said.
"If that changed we would need to look again at whether we
should do anything on monetary stance, the interest rate, or
something about the monetary transmission process," Knot added.
"We have deployed instruments in both directions before."
Speaking at the unveiling of the Dutch central bank's annual
report, Knot said the country was well-positioned to take
advantage of a "worldwide upswing" but that financing for the
domestic economy remained a concern.