ECB's Noyer: Deflation risks could prompt further rate cuts

FXstreet.com (Barcelona) - ECB Governing Council member Christian Noyer, who appeared at a conference in Tokyo on Monday, said that the central bank would maintain rates at current or lower levels for an extended period of time, as long as deflation woes in the Eurozone persist.

“We see risks that low inflation will remain for some time,” Noyer stated. “We will keep interest rates low for an extended period, or even lower if need be, for price stability.”

The ECB Governing Council member said that the most important issue was not to allow the current low inflation turn into deflation.

Earlier this month the ECB decided to reduce the main refinancing rate by 25bps to a record low of 0.25%, in response to the falling inflation.