10 Jul 2014
ECB Monthly Report: Governing Council unanimous in commitment to using unconventional instruments if necessary
FXStreet (Łódź) - The July ECB Monthly Report generally echoed the latest monetary policy statement, in which the Governing Council reiterated their pledge to keep rates low for an extended period of time and suggested that the package of measures implemented in June has already led to a further easing of the monetary policy stance.
"The Governing Council is unanimous in its commitment to also using unconventional instruments within its mandate, should it become necessary to further address risks of too prolonged a period of low inflation," the report stated. "The Governing Council is strongly determined to safeguard the firm anchoring of inflation expectations over the medium to long term."
The ECB also suggested that the risks to the Eurozone economic outlook are on the downside and that the major threats include geopolitical tensions as well as lack of momentum in the pace of implementing structural reforms by the EU Member States and a poor domestic demand.
"The Governing Council is unanimous in its commitment to also using unconventional instruments within its mandate, should it become necessary to further address risks of too prolonged a period of low inflation," the report stated. "The Governing Council is strongly determined to safeguard the firm anchoring of inflation expectations over the medium to long term."
The ECB also suggested that the risks to the Eurozone economic outlook are on the downside and that the major threats include geopolitical tensions as well as lack of momentum in the pace of implementing structural reforms by the EU Member States and a poor domestic demand.