SPECULATION over expected easing by the
ECB sources told Reuters that the central ban is preparing its options for next month, including interest rate cuts may take the Eurozone's benchmark rate into negative territory for the first time.
The central bank is also said to be thinking about a range of interventions into credit markets, pushing the euro area's banks to raise their lending particularly to small firms. Despite low rates, lending continues to fall in the Eurozone.
"If it is necessary, then the Bundesbank is prepared to take action," Weidmann said.
However, he added that some unspecified measures currently under discussion were unsuitable.
ECB executive board member
The ECB's inflation target is for prices to rise at close to but below two per cent, which is not forecast to happen even by the end of 2016.
"As the inflation outlook keeps on worsening, the pressure for the ECB to intervene is reinforced," said Herve Armourda of
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