ECB's Papademos: ECB May Ease Further If Inflation Risks Stay Low
"If downside risks to price stability persist," he said, "easing of monetary policy could be warranted."
Papademos was participating in one of several panels commemorating the 10th anniversary of the euro at the American Economic Association's annual meeting.
The ECB has already cut its interest rate 175 basis points in recent months, to 2.5%. Declining energy prices, along with deepening economic downturn in the euro area, has persuaded the central bank that inflation in the medium term will remain below its official ceiling of 2%.
The central banker pointed out that economic activity in the euro-zone, which expanded to 16 members on the Jan. 1 addition of Slovakia, "is likely to remain weak and may contract in the first half of the year."
-By Emily Barrett, Dow Jones Newswires; 201-938-2248; emily.barrett@dowjones.com
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Publié le 04 janvier 2009 Copyright © 2009 Dowjones
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