(Clarifies in paras 5-6 discussion over size of possible BNP
LONDON, June 6 The European Central Bank can
still tweak some of its interest rates, although further cuts to
its benchmark refinancing rate are unlikely, the bank's vice
president said on Friday.
The ECB took the bold step of effectively charging banks if
they park cash with it on Thursday by taking its marginal
deposit rate - one of the two rates that straddle its benchmark
refi rate - into negative territory.
"(ECB head Mario) Draghi made clear that for all practical
purposes this is the lower bound, but he also didn't exclude
that in some developments of the situation, we will act,"
Constancio said in an interview with CNBC.
"As he said, we can still act in some of the key rates...
For instance we could tweak with the corridor, not necessarily
the main refinancing rate."
In response to another question on the impact of a possible
fine of "as much as 16 billion euros" by U.S. authorities on
France's biggest bank BNP Paribas, Constancio said it
would "not necessarily kill the bank".
Earlier, Reuters reported that U.S. authorities negotiating
with BNP Paribas over alleged sanctions violations at one point
suggested that it pay a penalty as high as $16 billion, not
($1 = 0.7332 Euros)
(Reporting by Marc Jones)