ECB's Noyer: Low inflation a threat to broader Eurozone recovery

By FXstreet.com | July 08, 2014 AAA

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.



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