ECB Preparing QE to Be Ready to Counter Deflation: Mersch
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European Central Bank Executive Board member Yves Mersch said policy makers are analyzing quantitative easing now to be able to react faster if deflation risks on the 18-nation euro area materialize.
“Between the moment where we decide and the moment where we are operationally ready, we should have a much shorter time lag than would be the case if nothing had been prepared,” Mersch said in response to questions after a speech in London today. “That’s the purpose of the announcement.”