ECB governing council member and Slovakian central bank governor on the wires 20 May 2016
- ECB is testing high low interest rates could go
- if further stimulus needed becomes necessary it should focus more on unconventional measures rather than rate cuts
- unconventional tools are the new normal
" Interest rates can still be lower and we are now testing how low we can go. The scope for deploying standard instruments is almost exhausted. I don't see much room for manoeuvre here.
For now, however, no measures are needed because measures unveiled in March have not had time to work and early indications that they will be effective"
Not needed or running out of options? ECB still hoping they might just yet pull out this by the skin of their teeth.
