ECB Chief Economist Tells Sueddeutsche ‘There Is No Deflation’

ECB still has enough room to maneuver, beyond interest-rate moves, Peter Praet says in interview with Sueddeutsche Zeitung. * Should interest rates be lowered to zero, ECB could still deploy quantitative measures including buying government bonds, or injecting capital into banks, Praet tells Sueddeutsche, adding “we are not at this point.” * Germany should invest more, as investment spending declined sharply in past 5 years, as opposed to private consumption *NOTE: ECB President Mario Draghi pushed for an interest rate cut on Nov. 7 over opposition from Bundesbank President Jens Weidmann and at least two other Governing Council members, according to four euro-area central bank officials.

To contact the reporter on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

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