The European Central Bank is happy with the outlook for inflation in the euro zone but it is ready to step in again if needed, ECB policymaker Peter Kazimir said today.
He was joining a chorus of central bank governors from all corners of the 20-country-bloc in warning about risks to the benign projections that the ECB unveiled on Thursday as it kept rates interest rates steady for a fourth meeting in a row.
“The coming year is likely to bring new challenges that households, firms and indeed our policy may have to respond to,” Kazimir, the Slovak central bank governor, said in an opinion piece.
“We remain flexible and ready to step in should future developments warrant fresh action,” he added.
Kazimir said the euro zone’s economic foundations were “showing cracks” that other policymakers should fix with structural reforms that integrate European capital markets and “reduce the bureaucratic weight” on businesses.
