Jazbec Says ECB Ready To Act In March If Needed: Report

(RTTNews) - The European Central Bank is ready to add more stimulus in March if needed, but only after a thorough study of available data in order to avoid reacting hastily to temporary developments, Governing Council member Bostjan Jazbec said Friday.

In an interview to the Wall Street Journal, Jazbec, who is the Governor of the Bank of Slovenia, said ECB policymakers required a "more comprehensive view on data".

Policymakers should not jump immediately on events which might or might not prove to be long lasting, the rate-setter added.

Eurozone inflation is being kept low by global forces such as falling oil prices, but this does not mean the bank should just wait-and-watch, as acting late poses the risk of eroding expectations and allow disinflation to continue, ECB President Mario Draghi said on Thursday.

After leaving interest rates unchanged in January, Draghi clearly signaled that more stimulus measures may come in March as the downside risks such as global uncertainty, market volatility and geopolitics have increased.

Further, Jazbec said ECB still has several tools to bring inflation to its target of 'below, but close to 2 percent'. However, ECB measures must be receive other policy support, the policymaker said, adding that such backing was seriously lacking sometimes.

The Slovenian central banker also said that it was completely unjustifiable to say that the central bank can do everything on their own to boost inflation and the economy.

He said that the low interest rate environment is encouraging consolidation in the banking sector, making them more efficient and help pass through of low interest rates to the real economy.