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ECB's Makuch says bank ready do to more if needed

Published 10/06/2014, 12:58
Updated 10/06/2014, 13:20

BRATISLAVA (Reuters) - The European Central Bank will do more if policy actions taken at its meeting last week prove insufficient, and there is still space to lower interest rates, ECB Governing Council member Jozef Makuch said on Tuesday.

Asked about asset purchases with new money, or quantitative easing, Makuch said it remained a possibility. He added that interest rates will stay low for a long time.

"How far (rates) can go is a technical question. There is room for a further cut in the benchmark rate, and of course space for adjustment of the corridor or keeping the corridor with the new benchmark rate," he said.

The ECB cut interest rates to record lows last Thursday and launched a series of measures to pump money into the sluggish euro zone economy. Its president Mario Draghi and other policymakers have pledged since that the euro zone's central bank will do more if needed to fight off the risk of Japan-like deflation in the 18-country bloc.

(Reporting by Jason Hovet; Editing by Catherine Evans)

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