ECB Governing Council member Erkki Liikanen, in his speech at the Bank of Finland’s quarterly news conference, said “It is worth emphasising that the European Central Bank has not yet used up all its room for manoeuvre in its interest rate policy. This concerns all key policy rates.”
Regarding non-standard measures (quantitative ease) Liikanen said “If the recession becomes further prolonged and the downside risks to price stability increase, it will be necessary to broaden the arsenal of non-standard measures and extend the duration of the measures. It is important to keep all options open.”
