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[HELSINKI] Slower growth in the global economy involves risks for the recovery of the euro area economy and combined with lower oil prices means inflation could rise more slowly than expected, ECB Governing Council member Erkki Liikanen said on Thursday.
A slower recovery in the euro area would present new challenges for monetary policy, Mr Liikanen, who is also the governor of Finland's central bank, said in a statement.
"The ECB stands ready to take all necessary measures. The monetary policy stimulus can, if necessary, be increased by adjusting the scale, composition or duration of the expanded purchase programme."
Mr Liikanen also said it was too early to say whether inflation in the euro area was on a sustainable path towards price stability.
According to Liikanen, the Eurosystem's expanded asset-purchase programme has progressed as planned but its economic impact will not be felt immediately.
"Full implementation of all current monetary policy measures supports recovery of the euro area economy and a sustained adjustment in the path of inflation... to close to 2 per cent over the medium term."
Although Mr Liikanen is considered an inflation hawk at the ECB, he said that an increase in average inflation to just below 2 per cent requires that from time to time the rate of inflation exceeds 2 per cent.