FRANKFURT, April 22 (Reuters) - The development of price pressures in the euro zone over the next two months will be key to determining whether the European Central Bank will add more stimulus, an ECB policymaker said.
If action is needed, Luis Linde, governor of the Spanish central bank and a member of the ECB Governing Council, said a quantitative easing programme - essentially printing money to buy assets - would be “not easy to implement” in the euro zone.
“If the situation arises that the new data for inflation in April and May show that the danger of inflation being too low for too long is there, the communique implies that the Governing Council is ready to act,” he told Market News International with reference to the ECB’s statement after its last policy meeting.
“It is true there is no precise definition of ‘too prolonged’,” Linde said in an interview published on Tuesday. “To decide that it’s already too prolonged, we have to take a judgment decision.” (Reporting by Eva Taylor and Paul Carrel)