March 11, 2016 / 3:16 PM / 4 years ago

ECB will act until inflation target is reached: Liikanen

FRANKFURT (Reuters) - The European Central Bank has not run out of tools to boost the economy and will continue to support it until it reaches its inflation target of almost 2 percent, ECB Governing Council member Erkki Liikanen said on Friday.

Liikanen, who is also the Finnish central bank governor, joined a chorus of policymakers defending the ECB and its latest stimulus package after President Mario stunned investors on Thursday by appearing to rule out further rate reductions.

“We did what was essential in this situation, but it is clear that the ECB’s ability to act has not run out,” Liikanen said in an interview with Finnish broadcaster MTV. “We have the capability and the tools if needed.”

Echoing Draghi’s opening statement on Thursday, he added: “We will continue to act until inflation is close but below 2 percent in the medium-term. This is a strong commitment and we will keep the interest rates at current or lower level for a long time.”

Reporting By Jussi Rosendahl in Helsinki; Writing by Francesco Canepa in Frankfurt; Editing by Hugh Lawson

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