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FRANKFURT, July 5 (Reuters) - Volatility in euro zone bond and currency markets over the past week has not been significant and partly reflect a misalignment between bond and equity prices, European Central Bank board member Benoit Coeure said on Wednesday.
The euro firmed and bond yields surged last week after ECB President Mario Draghi opened the door to policy tweaks, fuelling expectations that the ECB could announce a reduction of stimulus as soon as September.
"I don't think that these kinds of market reactions that we've seen last week are very significant in the very big picture given the economic forces that you see around," Coeure told a media briefing.
"To give you an example, we've seen quite a disconnect in the past month between the equity markets and bond markets globally," he added.
Coeure said that the ECB's rate-setting Governing Council had not discussed changes in monetary policy but such a discussion may come.
Some ECB policymakers have been spooked by the market backlash, suggesting they may be careful in sending any further policy signal when they next meet on July 20.
Coeure said equity prices, which reflect better growth prospects, and stubbornly low bond yields will have realign eventually.
"At some point you need alignment either way," Coeure said.
Indeed, the ECB raised growth projections in June and gave up a long-standing pessimistic view on growth, arguing that growth risks were now largely balanced. (Reporting by Balazs Koranyi and Padraic Halpin; Editing by Francesco Canepa)