FRANKFURT (Reuters) - The European Central Bank opened the door at its April policy meeting to possible money-printing to boost the euro zone economy and keep inflation from staying too low.
Following are highlights of ECB policymakers' comments since the April 3 meeting.
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MARIO DRAGHI (PRESIDENT), APRIL 24
"The policy stance may also be affected by a continued appreciation of the exchange rate. The exchange rate is not in itself a policy target, but a rise in the exchange rate, all else being equal, implies a tightening of monetary conditions, a downward impact on inflation and potentially a threat to the ongoing recovery. If so, this would call for policy action to maintain the current accommodative stance.
EWALD NOWOTNY (AUSTRIA), APRIL 23
On purchases of government bonds on the secondary market as part of a quantitative easing programme: "In principle, I would not rule that out, though the time has not yet come for that."
On inflation outlook: "We will only be able to really assess that in June, so I think that until then we should not take any measures. For the ECB, there is no urgent need for action.
ARDO HANSSON (ESTONIA), APRIL 23
On possible QE programme: "I still have questions because it is so operationally complex. ... There are a lot of issues that you have to decide. Which types of assets you would start purchasing? By what types of rules? How you would implement that in a decentralised system where there are 18 different central banks implementing monetary policy? You have to look at legal issues and so on, so I don't think it is so simple.
LUIS LINDE (SPAIN), APRIL 22
"If the situation arises that the new data for inflation in April and May show that the danger of inflation being too low for too long is there, the communiqué implies that the Governing Council is ready to act.
YVES MERSCH (EXECUTIVE BOARD), APRIL 17
"If these (foreign exchange) developments would continue, this would inevitably have to trigger a reaction by the ECB in order to maintain our accommodative monetary policy stance.
CHRISTIAN NOYER (FRANCE), APRIL 14
"Should we note a deviation from this path, we will use every instrument within our mandate, including unconventional ones, in order to cope effectively with risks of a too-prolonged period of low inflation.
"If we want to go to buying securities, which is really the heart of QE (quantitative easing), then of course we have to take all sorts of securities, we can buy private ones. We can buy also sovereign securities. ... It's absolutely possible to intervene on the secondary market (for sovereign bonds).
JOSEF BONNICI (MALTA), APRIL 14
On euro exchange rate: "But certainly negative interest rates could have some impact on this in the right direction.
BENOIT COEURE (EXECUTIVE BOARD), APRIL 13
"Overall, the yardstick for the success of any targeted asset purchases would not be the size of our balance sheet, but the observable effect of our operations on term premia across markets and jurisdictions. Or put differently, asset purchases in the euro area would not be about quantity, but about price.
MARIO DRAGHI (PRESIDENT), APRIL 12
"The strengthening of the exchange rate would require further monetary policy accommodation. If you want policy to remain as accommodative as now, a further strengthening of the exchange rate would require further stimulus.
EWALD NOWOTNY (AUSTRIA), APRIL 11
"In June we will have a new forecast for the rest of the year, we will have the data for the first five months, so I think that therefore this is something that gives us a full picture.
BENOIT COEURE (EXECUTIVE BOARD), APRIL 11
"The stronger the euro, the more need for monetary accommodation.
JENS WEIDMANN (GERMANY), APRIL 11
"Nothing in the euro zone suggests we will see a self-reinforcing downward spiral of falling prices and wages. The risk of broad-based deflation in the euro zone is therefore very low.
VITOR CONSTANCIO (VICE PRESIDENT), APRIL 10
On possible decision on asset purchases: "Our experts have been looking into it, and building scenarios, but no decisions have been taken."
PETER PRAET (EXECUTIVE BOARD), APRIL 10
"What is important to consider today is the signal that the ECB Governing Council has given with unanimity - to use all measures if the risk of too prolonged low inflation would materialise. It is more the signal at this stage that is more important.
JENS WEIDMANN (GERMANY), APRIL 8
"But we are following the development (of price pressures) very closely and, if necessary, are ready to take further measures to counter effectively a too prolonged period of low inflation rates. ...
"At the same time, it must be borne in mind that we would venture into uncharted waters with all the monetary policy measures currently on the table. Thus, questions arise about the effectiveness of such measures and about the associated risks and knock-on effects.
VITOR CONSTANCIO (VICE PRESIDENT), APRIL 7
On QE: "In our statutes ... it is stated that buying and selling securities is part of our tool kit. ... So we have to consider if indeed the risks to price stability - because that's the primary thing - are really in danger.
JENS WEIDMANN (GERMANY), APRIL 7
On QE: "We are talking about a situation where we see protracted low inflation rates and where we have a discussion about whether we have a deviation from our definition of price stability, not to the upper side but to the lower side. In such a situation it's normal that it's our common responsibility to think about instruments to cope with a potential situation where this deviation would become significant or worrisome.
YVES MERSCH (EXECUTIVE BOARD), APRIL 7
"The inflation and deflation risks are more or less level in EMU area which means that we do not see an imminent risk of deflation. However, we are ready to prepare for such a situation."
On QE: "From the theoretical agreement to the implementation of the operations is still a long way. ... The Governing Council said there is also unconventional instruments which means there is also conventional room for movement, and let me insist on that.
EWALD NOWOTNY (AUSTRIA), APRIL 7
On ECB's readiness for action: "It does not mean that steps are to be taken immediately, rather that one prepares for all eventualities."
"In my personal view I prefer measures that are as close as possible to the market. That means in my view the first measure is a strengthening of the ABS market in Europe. This doesn't mean that other things are ruled out in principle, but my personal focus would be on this area.
BENOIT COEURE (EXECUTIVE BOARD), APRIL 4
"At the ECB, we consider that the recovery has already arrived, but we know it to be gradual and fragile. We therefore want to accompany it with low, or possibly lower, interest rates, over a prolonged period.
VITOR CONSTANCIO (VICE PRESIDENT), APRIL 4
On QE: "We did not discuss details, because that was not the environment to do it. ... We will see how it goes and ... if indeed we will have to use all those instruments."
On moral hazard: "The fundamentals in Europe have improved, including in distressed countries ... so the need for big pressure now is less than it was.
"If we are talking about generalised asset purchases, it will have to be about asset purchases in all countries, not just countries who need that. So it's a pure monetary policy thing, not an instrument to put pressure on particular countries."
(Compiled by Frankfurt Newsroom; Editing by Catherine Evans)