Coene assures ECB ready to act if inflation falls further

FXstreet.com (Barcelona) - ECB Governing Council member Luc Coene said on Tuesday that the central bank is prepared to take policy action should inflation drop further. He stressed however that it was still too early to make any movements at the moment.

"If core inflation or inflation would continue to drop further, that in itself - even regardless of what the exchange rate does - in my view would already be sufficient reason to think about strengthening the accommodative stance of policy," Coene said.

The ECB Governing Council member added that narrowing the interest rate corridor could help subdue volatility in financial market rates.

He also commented on the upcoming Fed monetary policy meeting saying that he did not expect the FOMC to start tapering asset purchases yet.