ECB ready to do more to achieve its mandate – ECB’s Mersch

FXStreet (Mumbai) - Speaking at an MNI Connect event in Singapore on Tuesday, the European Central Bank (ECB) executive board member Yves Mersch told the audience that it’s too soon to judge whether the external headwinds will hamper central bank’s long-term inflation mandate.

Key Quotes:

"Three main causes underpin these developments: first, decelerating growth in emerging market economies; second, a stronger euro; and third, the fall in oil prices and commodity prices more generally. The consequences are renewed downside risks to the outlook for growth and inflation,"

"It is too early to judge whether these factors will cause lasting changes to the trajectory that the ECB expected inflation to follow,"

"In the event that the downwards risks I have mentioned weaken the inflation outlook over the medium term more fundamentally than we currently project, we would not hesitate to act,"

"Should more monetary policy impulse become necessary, the ECB is determined to use all available instruments to achieve its mandate over the medium term."