Guindos Says ECB Ready to Act If Euro-Area Economy Deteriorates

(Bloomberg) --

European Central Bank Vice President Luis de Guindos said the outlook for the euro-area economy has deteriorated and policy makers are ready to provide additional monetary stimulus if needed.

The comments mark yet another clear message from the ECB this week in the face of low inflation and risks to economic growth. President Mario Draghi there’s a chance that “additional stimulus will be required,” including interest rate cuts and bond purchases.

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“We expect inflation to continue decelerating in the coming months,” Guindos said in Santander on Thursday. Risks are “clearly biased downward,” and “if there is an additional deterioration of perspectives, the ECB is prepared to act.”

Earlier, Governing Council member Olli Rehn offered the same outlook, saying the ECB is ready to act with all instruments “as appropriate” unless the economic situation in the euro area improves.

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“We will consider the whole range of measures within our toolbox in our forthcoming meetings,” Rehn said in Brussels. He added that a recession is not expected, but the “softer patch has been longer than many perhaps expected.”

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