European Central Bank Governing Council member Luc Coene said on Monday that the central bank has a number of options to ease policy, including cutting deposit rate below zero and offering more cheap loans to banks.
Negative rate on deposits at the ECB is one of the possibilities, reports said citing his remarks during a seminar in London.
Coene, who heads the Belgian central bank, said extending the long-term refinancing operations (LTROs) is another option before the ECB to ease monetary policy, if required.
On Spain, Coene warned that rising bond yields may force the country into asking for bailout. "If the markets see that Spain is not going to" ask for financial assistance, "it will not be long before spreads will rise again and Spain will be forced to come back" on its decision to request bailout and submit to ECB conditions.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.