VIENNA (Reuters) - The European Central Bank can act again if necessary to keep inflation in the euro zone on target, European Central Bank Executive Board member Joerg Asmussen said in a radio interview aired on Tuesday.
The ECB unexpectedly cut its benchmark interest rate to a record low of 0.25 percent earlier this month after euro zone inflation slowed sharply to 0.7 percent in October.
“If the situation in inflation requires it, we can act again and one of the possible measures would be to (introduce a) ... negative deposit rate,” Asmussen told Austrian broadcaster ORF. He would be “very, very careful” in deploying this tool but did not want to rule it out completely.
Reporting by Eva Taylor in Frankfurt and Georgina Prodhan in Vienna; Editing by John Stonestreet