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ECB's Coeure says QE would anchor long-term financing conditions

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The aim of a eurozone quantitative easing plan would be to anchor long-term financing conditions in peripheral countries and the broader eurozone, European Central Bank Executive Board member Benoit Coeure said on Friday in an interview.

[PARIS] The aim of a eurozone quantitative easing plan would be to anchor long-term financing conditions in peripheral countries and the broader eurozone, European Central Bank Executive Board member Benoit Coeure said on Friday in an interview.

Mr Coeure told Liberation daily that the Frankfurt-based bank must decide whether the bond-buying would focus on specific countries or would be spread across the whole eurozone.

"The aim of a QE is to ensure trust in the capacity of a central bank to stabilise inflation," he said.

Mr Coeure said the deflation risk had increased in the summer of 2014 and said European policymakers must mobilise all tools to boost growth.

"It's out of the question that Greece leave the euro," he said when asked about what could happen after general election there on Jan 25.

REUTERS