ECB prepared to do more if necessary to achieve inflation target
Peter Praet gives a speech during a meeting organised by the Grand Conferences Catholiques in Brussels January 14, 2013. REUTERS/Eric Vidal
FRANKFURT (Reuters) - The European Central Bank is prepared to ease monetary policy further if necessary to prevent low inflation in the euro zone from becoming entrenched, its chief economist said on Monday.
"The prolonged period of low inflation we are in today has increased the risks that inflation misses might become persistent, which would be deeply damaging for the economy," Peter Praet said at an event in Rome.
"This is why we have reacted so forcefully to secure our objective – and will continue to do so in the future if necessary."
(Reporting By Francesco Canepa; editing by John Stonestreet)
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