European Central Bank can act further if slowdown worsens - Villeroy
PARIS, June 12 (Reuters) - The European Central Bank is
prepared to act further if the current economic downturn takes a
turn for the worse even though central banks cannot alone do
everything to keep economies strong, said ECB policymaker
Francois Villeroy de Galhau.
Villeroy, who is also governor of the Bank of France, said
that uncertainty over trade tensions between the United States
and China was the biggest threat to the global economy.
As long as inflation falls short of the ECB's target, it
must keep monetary policy "active and accommodative" as long as
necessary, Villeroy said.
"If the current slowdown becomes a real slamming of the
brakes, we can do more than we are doing currently," Villeroy
told French television channel CNews on Wednesday.
He added, however, that it was up to politicians to resolve
the uncertainty created by trade tensions and that central banks
could not do everything to keep economic growth strong.
"They can temporarily attenuate the consequences of a weaker
global economy, but they cannot take care of the cause," he
(Reporting by Leigh Thomas and Yann Le Guernigou;
Editing by Sudip Kar-Gupta)
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