FRANKFURT The following are selected comments from European Central Bank policymakers on monetary policy in the weeks leading up to Thursday's interest rate decision.
BENOIT COEURE, EXECUTIVE BOARD MEMBER, AUG 27
"We will fulfil the price stability mandate given to us by the Treaty. But if other actors do not take the necessary measures in their policy domains, we may need to dive deeper into our operational framework and strategy to do so.
PETER PRAET, EXECUTIVE BOARD MEMBER, AUG 31
"An overly rigid interpretation of the price stability objective, however, may at times give rise to conflicts between price stability and financial stability...
"Against this background, the ECB follows a flexible medium-term horizon and, as part of its two-pillar strategy, closely monitors the dynamics in money and credit which may act as signals for the build-up of financial imbalances.
"If a central bank downgrades its inflation mandate to a point where inflation expectations become seriously de-anchored, sooner or later it will be called upon to assume full responsibility for bringing inflation back under control. At that point, inflation stabilisation and a re-anchoring of expectations may have to come at a very high cost in terms of output losses and financial stability risks.
FRANCOIS VILLEROY DE GALHAU, GOVERNING COUNCIL MEMBER, AUG 31
"Negative interest rates are useful but they are just one among many instruments and have their limits. This is why we have to stick to the current monetary policy. And yes, we're doing so sustainably."
BENOIT COEURE, EXECUTIVE BOARD MEMBER, JULY 28
"Central bankers should however be mindful of a potential 'economic lower bound', at which the detrimental effects of low rates on the banking sector outweigh their benefits, and further rate cuts risk reversing the expansionary monetary policy stance.
"The current conditions of financial intermediation suggest, however, that the economic lower bound is safely below the current level of the deposit facility rate and that the impact of negative rates, combined with the asset purchase programme and forward guidance, has clearly been net positive."
VITOR CONSTANCIO, VICE PRESIDENT, JULY 7
"We are well aware of collateral effects of our policy on the economy and know the limits of certain policy instruments."
(Reporting by Balazs Koranyi; Editing by Toby Chopra)