European Central Bank President Mario Draghi said the central bank is considering further policy tools in an effort to boost the economies that share the Euro.
Mr. Draghi has, in recent months held out the possibility of charging lenders to hold cash at the Frankfurt-based central bank by introducing a negative deposit rate. The rate has been at zero since July of last year. That’s one of a range of tools, including further long-term lending operations and adjusting the collateral framework, that the ECB is mulling as the 17-member euro area remains stuck in its longest-ever recession.
Draghi said “There are numerous other measures – standard interest rate policy and non-standard measures – that we can deploy and that we will deploy if circumstances warrant”.
“The ECB’s Governing Council has stressed that monetary policy will remain accommodative for as long as necessary,” Draghi said in the speech. “In the period ahead, we will monitor very closely all incoming information on economic and monetary developments and stand ready to act if necessary.”
Since taking over as President of the ECB, Mr. Draghi has pushed interest rates to a record low. However, some of his efforts have been frustrated here in Ireland as mortgage providers have refused to pass along those cuts to their customers.