ECB’s Cœuré to act on further deflationary pressures

FXstreet.com (Barcelona) - ECB’s Cœuré, who is speaking in Tokyo, said the ECB is likely to act again if further decline in consumer price buffer above zero, adding that ECB has enough instruments to act on prices if needed.

Cœuré also made some early comments, pointing that "ECB rate cut motivated by disinflation ‘in slow motion’ witnessed for several months", adding "ECB did not cut rates because it sees deflation risks materializing in euro area."

Going forward, Cœuré expects inflation "to very gradually return to levels below but close to 2%." Finally, he explained that "ECB acted because it wanted to keep sufficiently safe margin above zero % inflation."