European Central Bank Vice President Luis de Guindos said that the central bank will react with a combination of measures if it perceives that inflation is set to deviate from its target, and further asset purchases remain a possibility. Speaking to the broadcaster CNBC, de Guindos said ECB has an ample range of instruments at its disposal and quantitative easing, or QE, is "one of them". "It could a combination of actions that could send, you know, the signal, not just the signal but the determination of the Governing Council that we are open to react," de Guindos told CNBC in the interview broadcast on Wednesday. "For us price stability is key, is our mandate and if we see that inflation expectations start to de-anchor, we will act."
ECB's toolkit includes forward guidance, longer-term loans to banks at cheaper rates called TLTRO, the reinvestment of the proceeds from maturities of assets that were acquired under the massive EUR 2.6 trillion bond purchases scheme that ended in December. On Tuesday, ECB President Mario Draghi said the central bank still has room to cut interest rates and to adopt measures to cushion the side effect from low interest rates.
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Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.