ECB’s Noyer Say ECB Has Already Embarked on Quantitative Easing

(CEP News) - The European Central Bank is already “in effect” in quantitative easing mode and is prepared to do more against the risks of deflation in the euro zone, the Financial Times cited Christian Noyer, Head of the Bank of France in an interview on Thursday.

The central banker makes the argument that the ECB’s expanded liquidity operations throughout last year is “a way of doing quantitative easing”.

The remark has been made by the central bank’s president Jean-Claude Trichet in the past.

Also echoing Trichet, Noyer added that the ECB has not yet decided whether or not rates should be cut further from the current 1.50% level, but noted that the closer rates came to zero, the less the impact of further monetary easing on the economy.

In the meantime, the French economy could continue to perform worse than the Bank of France expects in the first quarter of 2009, he added.

By Erik Kevin Franco, efranco@economicnews.ca

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Posted in Categories: Economy, Eurozone, Releases.

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