ECB's Constancio: ECB stands ready to counter deflationary risks

FXStreet (Łódź) - Presenting ECB's 2013 annual report today at the European Parliament, ECB Vice President Vitor Constancio said that the central bank is prepared to maintain a “high degree accommodative monetary policy” for as long as necessary and that it is ready to act if deflationary pressures in the Eurozone increase.

"We are ready to act swiftly if needed, and the Governing Council has stated unanimously its 'commitment to using also unconventional instruments within our mandate to cope effectively with the risks of a too prolonged period of low inflation'," Constancio assured, which is not exactly in line with other ECB governing council members' statements today.

Constancio warned that deflation could be easily brought about by any shock in the current environment and signaled that the ECB policymakers were waiting for April CPI data to see how much has the baseline scenario changed.