(CEP News) Frankfurt - European Central Bank Executive Board member Lorenzo Bini Smaghi said that the ECB’s key policy rate is “very close” to its minimum level and dismissed fears of deflation within the euro zone.

In an interview with the Financial Times Deutschland published on Monday, Bini Smaghi stressed the importance of keeping the key policy rate at a “certain level” without adding unnecessarily to liquidity levels or inflation expectations. “I think we are very close to this level,” Bini Smaghi said.

The central banker also said that he did not see a risk of deflation and warned against “exaggerated deflation fears” leading to rates being brought down too low.

Written by CEP News European Staff, eunews@economicnews.ca

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Posted in Categories: Economy, Eurozone, Releases.

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