ECB ready to be 'pillar of stability' amid ongoing uncertainty

Frankfurt

THE European Central Bank is readying itself to again underpin the euro area's cohesion if needed, according to Governing Council member Yannis Stournaras.

As policy makers prepare to debate the future of their asset-purchase programme on Dec 8, they're faced with an outlook that is increasingly foggy. While euro-area inflation is rising and the recovery continuing, officials are also aware that a series of national votes in the next 12 months could change the political landscape and shock the economy.

"Independent central banks will have a much bigger role to play if developments aren't so benign in the political sphere," Mr Stournaras said in an interview on Friday. "If there's more volatility, more uncertainty, more protectionism, we want to be an even stronger pillar of stability." The comments by the governor of the Greek central bank, at the institution's headquarters in Athens, echo remarks by other policy makers in recent weeks. ECB president Mario Draghi said on Nov 18 that "we cannot be sanguine" over the economic outlook. …