ECB's Constancio Seeks More Time For Stimulus To Have Effects

(RTTNews) - Latest stimulus measures adopted by the European Central Bank to boost growth and inflation in the euro area must be allowed more time to have an impact, ECB Vice-President Vitor Constancio said Monday.

"The ECB will continue to do what is necessary to achieve its goal of reaching a level of inflation close to 2 percent and enough policy tools can still be used," Constancio said in a speech in London.

"Our monetary policy has been effective. We have to allow some time for the package of measures adopted in March to produce its effects, while closely monitoring external developments."

His comments suggest that the ECB is unlikely to ease policy in the near term.

The policymaker also pointed out that the ongoing moderate recovery in the euro area remains subject to fragilities. The support from external demand could be markedly lower in the future, he said.

Constancio also repeated the ECB's call for structural and fiscal reforms in the euro area.

"Other actors need to do their part in order to deliver a sustainable recovery and boost the productive capacity of countries," he said.

"...Combined, this would make the euro area fit to deliver a more prosperous future for its citizens."