PARIS--Low and declining inflation remains the main challenge in
Europe, European Central Bank governing council member Christian
Noyer said Tuesday.
"This prevents adjustments in relative prices, an important
mechanism to eliminate gaps in competitiveness, and increases the
risk of outright deflation, should a negative shock occur in the
future," Mr. Noyer said at a conference in Paris.
The European Central Bank is "ready to take any actions that may
prove necessary should downside risks further materialise," he
added.
Mr. Noyer's comments echo those of ECB President Mario Draghi,
who kept the door open to additional stimulus including large-scale
asset purchases if needed to fight excessively low inflation, while
rejecting concerns over super-easy monetary policies at the ECB and
other central banks.
Write to Noemie Bisserbe at noemie.bisserbe@wsj.com
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