ECB will do anything to avoid credit crunch - Lane to paper

Executive Board member of the European Central Bank Philip Lane attends the Fortune Global Forum in Paris, France, November 18, 2019. REUTERS/Gonzalo Fuentes/File Photo

MILAN (Reuters) - The European Central Bank will do anything possible to ensure that the current crisis is not made worse by a credit crunch, its Chief Economist Philip Lane told Il Sole 24 Ore in an interview published on Thursday.

When asked if any new interest cuts were possible, Lane added that the net asset purchases under the Pandemic Emergency Purchase Programme (PEPP) had proven to be particularly effective in the current state of uncertainty and market stress.

He reiterated that the ECB would continue with the net asset purchases until it believed that the critical phase of the coronavirus crisis was over.

Lane also told the paper that being part of the euro zone would help countries such as Italy to respond to the coronavirus shock.

Reporting by Agnieszka Flak; editing by Valentina Za