FRANKFURT Feb 10 The European Central Bank
should drop its reference to possible rates cuts from its policy
communication to safeguard its credibility, Executive Board
Member Yves Mersch said on Friday.
"How much longer can we continue to talk about 'even lower
rates' as being a monetary policy option?" Mersch said at an
event near Hamburg.
"Considering the importance of credibility for a central
bank, as mentioned, there should be no delay in making the
necessary gradual adjustments to our communication."
The ECB's long-standing guidance, aimed at assuring markets
that policy will stay easy for years to come, has been for rates
to remain at present or lower levels for an extended period of
time, well past the horizon of its bond purchases.
(Reporting by Balazs Koranyi, Francesco Canepa and Andreas