FRANKFURT (Reuters) - The euro zone economy is at risk of slipping into a self-fulfilling loss of growth momentum, European Central Bank Executive Board member Benoit Coeure said on Sunday, underlining the ECB’s readiness to act if needed.
Coeure pointed to the latest economic indicators and the European Commission’s downward revision of its growth forecasts and called for “forceful and consistent action” on the monetary policy front, but also for fiscal and structural measures.
“Monetary policy cannot support growth in a long-lasting way. Only an adequate mix of reforms and investment can do it. And it is a matter of urgency,” Coeure said in an interview.
“The ECB is committed to taking additional measures if we face the prospect of inflation being too low for too long.”
The ECB kept the door open for more action after its November policy meeting, saying it had tasked staff to prepare further measures, should it become clear that its current tools were not enough or if inflation expectation deteriorated.
Reporting by Eva Taylor