FRANKFURT (MNI) – The European Central Bank is “inflexibly
committed” to price stability, ECB Governing Council member Axel Weber
said Friday.
Although giving central banks additional tools for ensuring
financial stability is in order, “I wouldn’t overburden central banks
with too many trade-offs,” he said.
“We are inflexibly committed to price stability,” he assured.
“The bluntness of the interest rate instrument is a key argument
why financial stability should be taken up by macroprudential tools,” he
said.
Addressing the debate as to whether a credit crunch looms in the
Eurozone, Weber said: “We have always said that a credit crunch may be a
risk if the economy picks up, but now it is not a risk.”
Information provided by the ECB’s monetary analysis has helped the
central bank to devise and carry out its non-standard liquidity
providing measures, he said.
“I always see the monetary analysis as something that keeps
policymakers from being too short-sighted,” he said.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
