FXStreet (Łódź) - European Central Bank executive board member Christian Noyer said on Tuesday at a banking industry conference that the biggest threat for the recovery in the Eurozone was the stubbornly low inflation, which keeps financial conditions tight, as well as the strong euro and rising real rates.



"While nominal conditions are more accommodating in the euro area than in the U.S., real indicators point to a more restrictive stance," the ECB policymaker said adding that "the financial economy may be heading towards a bad equilibrium that would threaten the real economic recovery."



Should risks intensify, the ECB is ready to take further monetary policy action, Noyer assured, declaring that the central bank was 'actively preparing' to buy asset-based securities.



Furthermore he said that the impact of reforms implemented in southern European countries was finally becoming evident, adding however that France should step up its reform efforts.



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Forex outlook: EUR/USD might see a negative outcome by this week – TDS

  2. Forex News

    EUR/USD deflates to 1.1030

  3. Forex News

    Opportunities Abound in EUR- and USD-pairs after Greek Referendum

  4. Forex News

    Greece Hopes to Restart Debt Deal Negotiations. Will the EU Oblige?

  5. Forex News

    EUR/USD keeps the red near 1.1060

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!