April 11, 2019 / 12:05 PM / 2 months ago

Vasle: ECB ready to adjust instruments to get closer to inflation goal

FILE PHOTO: Sign of the European central Bank (ECB) is seen ahead of the news conference on the outcome of the Governing Council meeting, outside the ECB headquarters in Frankfurt, Germany, March 7, 2019. REUTERS/Kai Pfaffenbach/File Photo

LJUBLJANA (Reuters) - The European Central Bank is “ready to adjust all its instruments” to ensure inflation gets closer to the ECB’s inflation goal in a sustainable way, ECB governing council member Bostjan Vasle said on Thursday.

“While considering that we will take into account mainly ... the effectiveness of transmission of monetary policy over banks and macroeconomic conditions,” Vasle, who is also the governor of the Bank of Slovenia, said in a statement.

Vasle, who wrote the statement following ECB council meeting on Tuesday and Wednesday, also pointed out that the ECB council stressed the need for coordination of economic policies, adding fiscal policies and structural reforms should accompany monetary policy decrees.

“This is the only way to ensure higher potential growth and reduce sensitivity to further shocks,” he said.

He added that the ECB council sees increased risks regarding economic conditions, like Brexit and trade wars, while movements regarding household spending and conditions on the financial markets remain positive.

As a consequence the council kept the key interest rate unchanged and said that it will remain unchanged at least till the end of the year or as long as needed, Vasle said.

He added the council decided to reinvest proceeds from maturing papers that were purchased as a part of quantitative easing program and also announced further targeted longer-term financial operations, the conditions of which will be determined at “one of the future ECB council sessions”.

Reporting By Marja Novak; Editing by Angus MacSwan

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