PARIS, April 22 European Central Bank executive
board member Benoit Coeure said there was further margin to
reduce the main interest rate below 0.25 percent and that the
strength of the euro could be keeping inflation too low.
"We have many tools in the event that it becomes necessary
to loosen our monetary policy," Coeure told Le Monde newspaper
in an interview published on Tuesday. "We still have further
margin to reduce our main interest rate."
Asked about the level of the euro, he said: "The question
for us is whether the level and future trajectory of the euro
could slow a return to inflation close to and below 2 percent."
(Reporting by Nicholas Vinocur; Editing by James Regan)